ibusinesslines.com
ibusinesslines.com August 19, 2018


Wall Street drops on concerns over US-China trade woes, rising inflation

16 May 2018, 09:02 | Kelvin Horton

Daily June E-mini NASDAQ-100 Index

E-mini NASDAQ-100 Index

Stocks closed lower Tuesday, breaking an eight-day winning streak for the Dow Jones industrial average.

The Dow Jones industrial average gained 68 points, or 0.3 percent, to 24,899.

KEEPING SCORE: The S&P 500 index fell 25 points, or 1 percent, to 2,704 as of 3:30 p.m. The Nasdaq composite dropped 78 points, or 1.1 percent, to 7,332.

A surge in US government bond yields to their highest level in nearly seven years sent Wall Street shares sliding on Tuesday after strong retail sales data stoked inflation concerns and investors fretted about looming trade talks between the United States and China.

That paves the way for higher borrowing costs on mortgages.

The probability that the US central bank will raise its benchmark rate a fourth time this year went above 50 percent for the first time, according to the CME's FedWatch tracking tool for the fed funds futures market. A move in the yield above 2.9 percent earlier this year triggered a correction for US equities.

Treasury yields surged higher after April retail sales came in as expected with a 0.3% month-over-month increase, but the March increase was revised higher to 0.8% from 0.6%, and core retail sales jumped 0.4%. The Dow is on track for a gain of 2.2 percent, while the S&P 500 is closing in on a gain of 2.4 percent.

It also put investors in the mood to sell their shares in homebuilders.


The yield curve steepened from near its flattest levels since 2007, with the spread between the 2 year and 10 year bond yields widening 5bps to 50bps.

Technology and health care sector companies took some of the worst losses. Chip maker Nvidia fell 3.8 percent; drug maker Celgene slid 3.9 percent. Brent crude, used to price worldwide oil, added 20 cents to $78.43 in London.

The Russell 2000 is up 64.83 points, or 4.2 percent.

CURRENCIES: The dollar rose to 110.38 yen from 109.66 yen late Monday.

In other energy futures trading, heating oil was little changed at $2.25 a gallon.

Major indexes in Europe finished mixed Tuesday.

The Dow is down 12.81 points, or 0.1 percent. France's CAC 40 inched up 0.2 percent. Australia's S&P/ASX 200 lost 0.6 percent.



Other News

Trending Now

Hidden Pages in Anne Frank's Diary Deciphered After 75 Years
In an interview, Ronald Leopold, executive director of the Anne Frank House, said, "It is really interesting and adds meaning to our understanding of the diary ".

Neymar Responds To Real & Man Utd Transfer Links
"It would be awful because of everything that Ney means to Barcelona ", Messi told TyC Sports . The Argentine continued: 'I don't compete with Cristiano.

Crypto Exchange Gemini Adds Support For Privacy Coin ZCash
What this suggests then, once Zcash actually hits Gemini, trading volume will skyrocket and thus will the value of the currency. Subsequent to the official announcement of Gemini, the price of Zcash increased from 0.0293 to 0.0456 BTC , by almost two-fold.

Kashmiri youth, including woman, thrashed for feeding stray dogs in Delhi
A video also went viral after the incident which shows some people, including women, arguing with the victims and assaulting them. Talking about the hockey sticks in their hands, the residents claimed that they had the sticks because of dogs menace.

Steve Bruce: 'End of Championship playoff semi-final was agony'
Bruce has led two teams through the playoffs to the Premier League but expected a tight encounter against the Londoners. I think our game plan worked very well so the manager deserves a lot credit for that".

United States sanctions financial leaders in Iran, Iraq over Hezbollah funds
Typically, when the US punishes individuals with sanctions, it prohibits Americans or USA companies from doing business with them. At the time, the USA singled out the Central Bank of Iran as "complicit" in the operation, foreshadowing Tuesday's action.

Rachael DelTondo, 32-Year-Old Teacher Fatally Shot in Aliquippa
Their wedding was canceled a few months after she was found in the vehicle with the student, but before her name was made public. Though known in local media outlets for her dispute with her wedding dress designer, Rachael DelTondo was once a teacher.