Latest US-China trade spat hits US stocks

File photo. Photograph:( Reuters )

AFP New York, NY, USA Jul 12, 2018, 12.20 PM (IST)

Wall Street's four-day winning streak ended with a thud Wednesday as another round of US-China trade tensions prompted a global stocks selloff.

The Dow Jones Industrial Average dropped 0.9 per cent to close the day at 24,700.45 

The broad-based S&P 500 shed 0.7 per cent to end at 2,774.02, while the tech-rich Nasdaq Composite Index lost 0.6 per cent at 7,716.61.

President Donald Trump's administration late Tuesday launched the process to impose fresh tariffs on another $200 billion in Chinese goods, an escalation only days after tit-for-tat duties on $34 billion in goods came into effect. 

Beijing vowed to retaliate to the latest move, calling the US action "totally unacceptable."

Those developments pushed US stocks into the red throughout the session, ending a four-day streak of gains.

Adding to the unease was a public clash between Trump and German Chancellor Angela Merkel at the NATO summit in Brussels after the US leader called on allies to boost their defence spending. 

The list of big decliners included exporters to China, such as Caterpillar, which fell 3.2 per cent, Boeing, down 1.9 per cent and Deere & Company, down 2.2 per cent.

Petroleum companies Chevron and ConocoPhillips lost 3.2 per cent and 2.3 per cent following a big fall in oil prices.

Twenty-First Century Fox slumped 4.0 per cent after increasing its takeover offer for the 61 per cent of the Sky TV group it does not own, valuing the company at £24.5 billion ($32.5 billion).

American Airlines plummeted 8.1 per cent after it trimmed its estimate for revenue per seat mile for the second quarter.