Fresh U.S.-China trade worries push stocks down

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Wall Street closed out a volatile week with losses Friday as investors worried that upcoming trade talks aimed at resolving the U.S.-China trade war could be in trouble.

The selling, which erased modest early gains, ended the Standard & Poor’s 500 index’s three-week win streak. The benchmark index is still up 2.2% for September.

Markets rallied this month after the United States and China took steps to ease tensions in advance of their next round of talks. That had fueled speculation among investors that the two countries may at least reach an interim deal on trade. On Monday, oil prices soared more than 14% after a key Saudi Arabian oil processing facility was attacked. Oil prices retreated after the Saudi government said production could be restored by the end of the month, although the prices are still up nearly 6% for the week.

Technology stocks accounted for the biggest share of the market’s losses. The sector is particularly sensitive to swings on the trade conflict because many companies manufacture products in China. Apple declined 1.5%. Microsoft slid 1.2%. Netflix slid 5.5%, leading communications services companies downward. In an interview with Variety published Friday, Netflix CEO Reed Hastings acknowledged that the company faces tough competition from Disney, Apple and other companies rolling out streaming services in November. Netflix shares are down nearly 26% this quarter.Roku plunged 19.2% as investors worried that the shake-up in streaming will push down the prices Roku can command for its video-streaming devices.

 

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TheWarMonitor There should not be any worry. Every country has rights to protect their interests. US is right to raise the tariff on cheap Chinese products, which was giving them an advantage. It's high time to opt for local for everyone. If not for economy sake, then for the environment.

Look on the building thinkers... Do you think they are essential to a society?

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