Stocks - Dow Slumps on Fresh Trade Worries

Aug 02, 2018

Wall Street was lower on Thursday amid renewed trade worries and disappointing corporate financial results.

The S&P 500 fell 14 points, or 0.51%, to 2,799.08 as of 9:40 AM ET (13:40 GMT), while the Dow fell 205 points, or 0.81%, to 25,128.02 and the tech-heavy Nasdaq Composite lost 22 points, or 0.29%, to 7,684.81.

Trade uncertainty continued to weigh on investors minds after reports that the White House plans to propose 25% tariffs, instead of 10%, on $200 billion of imported Chinese goods. The two largest economies in the world have been in a tit-for-tat trade war over the last few months, which has weighed heavily on markets.

On Wednesday, U.S. Trade Representative Robert Lighthizer said the proposed increase was due to China refusing to meet U.S. demands.

China responded that “blackmail" would not work and that it would retaliate if the U.S. continues to impose fresh trade tariffs.

Tesla (NASDAQ:TSLA) surged 8.4% after the opening bell, after reporting higher-than-expected revenue and amid apologies from CEO Elon Musk for his past behavior toward analysts.

Meanwhile, Ford Motor (NYSE:F) rose 0.35%, while Starbucks (NASDAQ:SBUX) increased 0.67% after its CEO confirmed the company will partner Chinese e-commerce company Alibaba (NYSE:BABA) to expand into China. Alibaba was down 2.35%.

Elsewhere, Red Robin Gourmet Burgers (NASDAQ:RRGB)r slumped 18.43% after its financial results came in less than expected. Boeing (NYSE:BA) fell 1.66%, while TripAdvisor (NASDAQ:TRIP) was down 14.09% after its earnings report missed expectations.

In Europe, stocks were down. Germany’s DAX fell 211 points, or 1.66%, while in France the CAC 40 decreased 43 points, or 0.80%, and in London, the FTSE 100 was down 86 points, or 1.13%. Meanwhile, the pan-European EURO STOXX 50 lost 42 points, or 1.21%, while Spain’s IBEX 35 slumped 113 points, or 1.16%.

In commodities, Gold futures fell 0.24% to $1,224.70 a troy ounce, while crude oil futures decreased 0.37% to $67.41 a barrel. The U.S. dollar index, which measures the greenback against a basket of six major currencies, rallied 0.29% to 94.73.