Major US equity indices edged lower during the opening hour of trade on Friday and were being weighed down by renewed US-China trade spat.
Reports that the US President Donald Trump was preparing to go ahead with tariffs on additional $200 billion worth of Chinese imports, as early as next week, dampened investors’ appetite for perceived riskier assets – like equities.
Market participants also awaited fresh updates from the ongoing trade-talk between the US and Canada. The latest comments by Canadian officials, expressing concerns that a deal won’t be met by the end of Friday also seems to have forced bullish investors to stay on the sidelines.
Despite the uncertainty, all the three major indices remain close to record levels and remain on track for strong monthly gains. The blue-chip Dow Jones Industrial Average has gained over 2.0%, the broader S&P 500 Index has risen 3% and tech-heavy Nasdaq Composite Index has climbed over 5% during the month of August.
Looking at the weekly performance, both the Dow and the S&P 500 are on track for their third straight weekly gain, while the Nasdaq is poised for its second straight positive week.
Meanwhile, trading activity is likely to remain quiet as it comes ahead of a three-day weekend as the US markets will remain closed on Monday in observance of Labor Day.
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