Economy

Eyes on Wall Street during U.S.-China tariff war

Eyes on Wall Street during U.S.-China tariff war

Stocks climbed on Tuesday and clawed back a chunk of their losses from Monday's rout, the latest whipsaw move as investors weigh just how badly the escalating U.S. Last week marked the index's largest one-week decline since December 21.

"I'm starting to see some investors becoming anesthetized on the negotiations and focusing on what the market's going to look like a year from now", Hellwig added. Boeing shares also declined more than 3% amid speculation the airplane maker could be singled out by China in the trade war.

The Dow dove 711 points, or 2.7%, to 25,230 as of 1:24 p.m. Meanwhile, the Dow is down more than 4%.

The S&P 500 is up 305.02 points, or 12.2%.

Technology, industrial and consumer-focused companies are bearing the brunt of the losses. Battered tech shares led the advance as Apple Inc. and Nvidia Corp. bounced back from their biggest one-day declines since January. Chipmakers and other technology companies have warned that uncertainty over the trade war's outcome is prompting a slowdown in orders.

Bank stocks also fell sharply.

Dow futures are suggesting a rise of 44 points.

The U.S. last week ordered an aircraft carrier group and other ships, along with bomber aircraft, to the region based on intelligence reports showing an increased threat from Iran. The yield on the 10-year Treasury fell to 2.39% from 2.45% late Friday.

More news: Iran Commander Calls US Military in Gulf a Target, Not a Threat

Asian markets fell broadly.

MSCI's broadest index of Asia-Pacific shares outside Japan gained 0.5%. The Hang Seng Index sank 1.7 per cent while Shanghai shed 0.7 per cent and Tokyo ended down 0.6 per cent, marking its seventh straight loss. Officials also said they were preparing to expand tariffs to cover another $300 billion of goods. U.S. businesses that import Chinese goods pay the tariffs levied by the United States.

"An eventual agreement still seems the most likely outcome, although political miscalculation is a rising risk", said Paul Christopher, head of global market strategy at Wells Fargo Investment Institute.

"Ongoing trade flare-ups may continue to swing the stocks in the near-term, but we think the market may have priced a lot of this in", Citi said. The Q1 economic data helped change his mind. The ratio of the S&P 500 to the S&P GSCI commodities index rose to 6.7 earlier this month, near its 15-year peak hit in June 2017. A day earlier, they were the only winners in the market. The results so far show less than a 1% drop in profit.

The 180-delay on auto duties gives the president a respite from creating an all-out trade war on both the European and China fronts.

European and United States futures are also in the black, with risk appetite finding some support from Trump's comments that he expects trade negotiations to be successful.

Many market players "downplayed" the significance of the March inversion, he added, believing the Federal Reserve would sit on its hands so as not to derail the economic expansion.

Ride-sharing company Uber tumbled another 11.5% on its first full day of trading following its rocky debut on the stock market Friday.