Wall Street in the red as trade war hits US big names

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  • Alphabet Inc’s losses over 2.0%, dragging the tech-related sector lower.
  • US indexes bounced from early lows, falling anyway for a second consecutive day.

US indexes were sharply down this Monday, trimming part of their daily losses ahead of the close, yet finishing in the red amid concerns surrounding US-Sino trade war. Tech-related equities led the decline, with Alphabet Inc’s,  Google’s parent company down over 2.0% following reports the company suspended business with Huawei. Additionally, Bloomberg reported that companies like Intel, Qualcomm and Broadcom will not supply Huawei until further notice

The Dow Jones Industrial Average lost  84 points to close at 25,679.90 while the S&P shed 19 points or 0.67%, ending the day at 2,840.23. The Nasdaq Composite was the worst performer, down 114 points or 1.46% to settle at 7,702.38. Despite persistent risk aversion, US government bond yields held steady, throughout the day, with the benchmark yield for the US 10-year Treasury note ending the day at 2.41%.

Fears that the trade war will exacerbate the ongoing global economic slowdown would likely keep pushing investors away from high-yielding stocks.

 

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