US stocks retreat as trade uncertainty drags on
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Traders working on the floor of the New York Stock Exchange, in New York City, on Sept 2.
PHOTO: BLOOMBERG
Follow topic:
- US stocks fell after a court ruling challenged Trump's trade policy, creating uncertainty about trade war resolution.
- August data showed manufacturing activity declined for the sixth month, with weak production and employment figures.
- Kraft Heinz shares dropped 7% after splitting plans, while PepsiCo rose 1.1% following a US$4 billion investment.
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NEW YORK - Wall Street stocks retreated on Sept 2 after a US court ruling threw fresh uncertainty over President Donald Trump’s trade policy.
Mr Trump vowed to immediately seek a Supreme Court ruling after a US appeals court determined on Aug 29 that Trump exceeded his authority in tapping emergency economic powers to impose wide-ranging duties.
Major indices spent the entire session in negative territory with the Dow Jones Industrial Average finishing at 45,295.81, down 0.6 per cent.
The broad-based S&P 500 fell 0.7 per cent to 6,415.54, while the tech-rich Nasdaq Composite Index declined 0.8 per cent to 21,279.63.
“We’re thrown back in that place of uncertainty” regarding trade, said Mr Art Hogan, of B. Riley Wealth Management.
The court decision, and Mr Trump’s appeal, “prolongs the end or the exit from this trade war,” said Mr Hogan, dashing hopes the trade war was near “the exit ramp.”
Elsewhere, manufacturing industry activity shrunk for a sixth straight month in August, survey data showed, with production pulling back and employment still weak.
Later this week, markets will digest key hiring data for the same month.
Among individual companies, Kraft Heinz slumped 7 per cent after the food giant announced plans to split up into two companies. However, Berkshire Hathaway, which holds more than one-quarter of shares, signalled its disagreement with the announcement.
But PepsiCo jumped 1.1 per cent after activist firm Elliot Investment Management took a roughly US$4 billion (S$5.1 billion) stake in the soda and snacks company. AFP
