US Stocks Extend Losses as New Tariff Threat Looms
NEW YORK (AP) — Stocks extended their losses into a second day on Wall Street Tuesday after President Donald Trump's threat to escalate a trade war moved closer to reality.
U.S. Trade Representative Robert Lighthizer said higher tariffs on China will take effect on Friday. The deadline for more tariffs looms over negotiations, which are set to resume on Thursday in Washington.
Every sector fell, with technology companies and banks leading the losses. Utilities, normally safe-play holdings for investors, fared better than the rest of the market.
Microsoft and Intel both fell about 1.7%, leading losses in the sector. JPMorgan Chase and Bank of America each fell 1.5%.
The tougher rhetoric from the U.S. surprised investors who had been expecting that the world's biggest economies would come to some sort of agreement. The ongoing feud has raised costs on goods for consumers and companies.
Stocks pulled back from their heavier losses late Monday as investors brushed off some of the threats as another negotiating tactic. Fears of a bigger fight were eased when China confirmed it was sending its top economic adviser to Washington to continue talks.
KEEPING SCORE: The S&P 500 index fell 1.3% as of 10 a.m. The Dow Jones Industrial Average fell 317 points, or 1.2%, to 26,124. The Nasdaq composite fell 1.3%
GOOD INSURANCE: American International Group rose 7.4% after beating Wall Street's first quarter profit forecasts. It was one of the relatively few gainers in S&P 500. The insurer's solid quarter was driven by growth in underwriting revenue and premiums.
WEAK DOSE: Investors punished Mylan's stock after the generic drugmaker reported weak sales growth that fell short of forecasts. The company and its peers have been dealing with pressure to lower drug prices. The stock fell 13%.
By AP reporter Damian J. Troise