This article is from the source 'nytimes' and was first published or seen on . It last changed over 40 days ago and won't be checked again for changes.

You can find the current article at its original source at https://www.nytimes.com/2019/05/23/business/shares-stock-markets.html

The article has changed 10 times. There is an RSS feed of changes available.

Version 4 Version 5
Stocks Slide Over Worsening U.S.-China Trade Tensions Stocks Slide Over Worsening U.S.-China Trade Tensions
(32 minutes later)
Stocks tumbled as tensions between the United States and China continued to weigh on global markets on Thursday. Investors continued to hunker down, as signals from China and the United States suggested that both nations are girding for a longer-term trade fight.
Investors appeared to be reacting to a growing sense that the trade war between Washington and Beijing would continue indefinitely, and indeed was worsening. The Trump administration has blacklisted the Chinese telecommunications giant Huawei over security concerns, prompting Google and mobile carriers to limit their work with Huawei. In Washington, the Trump administration was preparing a substantial aid package for farmers, in an effort to cushion the blow as China buys fewer American agricultural products in retaliation for tariffs. In Beijing, President Xi Jinping has attempted to rally the nation by invoking key moments in Chinese Communist Party history to signal hardship ahead.
The Trump administration is preparing to announce a substantial aid package for farmers as early as Thursday, in an effort to cushion the blow as the trade war drags on. [Read more about the impact of the trade war on investors and companies.]
■ The S&P 500 was down about 1 percent in early trading, with trade-sensitive stocks falling further. An index of semiconductor makers, for example, fell more than 2 percent. Growing worries about the costs of an indefinite battle between the world’s two largest economies sent stocks down in Asia, Europe and the United States on Thursday, and were reflected in other financial markets as well.
■ The energy sector led the sell-off, dropping more than 3 percent. Benchmark American crude-oil prices dropped more than 4 percent, amid concern that the ongoing trade fight between China and the United States would weigh on global economic growth and demand for oil. Oil is down more than 6 percent this week. In the United States, the S&P 500 was down more than 1.5 percent shortly after midday, following sell-offs in major Asian and European markets overnight.
■ The selling wasn’t just confined to sectors closely tied to trade. The Russell 2000 index of small capitalization stocks — typically more closely tied to the domestic economy — fell more than 1.5 percent. The broad index has tumbled more than 4 percent in May, after negotiations between the United States and China suddenly faltered earlier this month, prompting a new round of tit-for-tat tariffs and shattering the calm that prevailed in markets since the start of the year.
■ Yields on government bonds declined, as investors put their money in government bonds for safekeeping. Bond prices and yields move in opposite directions. The yield on the 10-year Treasury note fell below 2.35 percent, its lowest level this year. On Thursday, the energy sector led the sell-off in American stocks, dropping more than 3 percent. Benchmark American crude-oil prices dropped more than 4 percent, reflecting concern about global economic growth and demand for oil. Oil is down more than 7 percent this week.
■ In Asia, major stock indexes closed broadly lower on Thursday. The Hang Seng in Hong Kong lost 1.6 percent, and the Shanghai Composite ended down 1.4 percent. The tech sector also continued to slump, falling more than 2 percent and adding to recent declines in the wake of the Trump administration’s blacklist of the Chinese telecommunications giant Huawei over security concerns. The order has prompted Google and mobile carriers to limit their work with Huawei. A key index of semiconductor makers, for example, fell more than 2 percent.
■ The trend was echoed in Europe, where the DAX in Frankfurt was trading 1.5 percent lower and the FTSE 100 in London slipped 1.3 percent. Automakers in Europe were among the worst performers, dropping as much as 3 percent. And yields on government bonds declined, as investors put their money in government bonds for safekeeping. Bond prices and yields move in opposite directions. The yield on the 10-year Treasury note fell below 2.35 percent, its lowest level this year.
■ In currency trading, the British pound has been sliding in value as expectations mount that Prime Minister Theresa May will resign, heightening uncertainties over Britain’s withdrawal from the European Union. The pound, which reached $1.33 in mid-March, fell as low as $1.26 on Thursday. In Asia, major stock indexes closed broadly lower on Thursday. The Hang Seng in Hong Kong lost 1.6 percent, and the Shanghai Composite ended down 1.4 percent.
[Read more about why Mrs. May faces calls to resign.] The trend was echoed in Europe, where the DAX in Frankfurt was trading 1.5 percent lower and the FTSE 100 in London slipped 1.3 percent. Automakers in Europe were among the worst performers, dropping as much as 3 percent.