US stocks closed lower on Tuesday, with the S & P 500 closing its eight-day winning streak, with fears of an escalation in trade tensions with the European Union and a weakening of the global prospects of the International Monetary Fund.
How did the benchmarks go?
The Dow Jones Industrial Average
fell 190.44 points, or 0.7%, to close at 26.150,58, while the S & P 500 index
dropped 17.57 points. or 0.6%, at 2.878,20. The NASDAQ composite index
declined 44.61 points, or 0.6%, to 7.909.28.
What pushed the market?
The office of the US sales representative threatened to impose tariffs on many European goods on Monday. The threat is a retaliation against the subsidies of European companies for the aircraft manufacturer Airbus SE
If the United States follows, the proposed tariffs will affect about $ 11 billion of US imports, including helicopters, bicycles, cheese and wine.
Lighthizer said the Trump administration will wait for the approval of the World Trade Organization for the implementation of the tasks. President Donald Trump on Tuesday morning tweeted that the EU took advantage of the United States, adding that "it will soon stop!":
Tensions between the United States and the European Union are approaching the administration, reportedly, to resolve a one-year quarrel with China, which has upset the markets amid fears that the clash between the world's major economies could disrupt global economic growth.
The IMF reduced the prospects for global economic growth in 2019 to 3.3% from the 3.5% forecast in January, marking its third reduction in growth expectations in six months. The decline has been widely felt, with all advanced economies, including the United States, and most major emerging market economies seeing their prospects deteriorate.
Meanwhile, the data indicated a tightening of the US labor market. The number of job openings in the United States has fallen from 538,000 to 7.1 million in the last working day of February, marking the lowest number of job openings since March 2018.
The optimism index for small businesses of the National Federation of Independent Affairs rose by 0.1 points to seasonally adjusted 101.8 scoring the third consecutive month in a narrow range.
What were the strategists saying?
"The tariff threat is probably what is moving the markets in a negative way," Karen Cavanaugh, senior market strategist with Voya Investment Management, told MarketWatch, although he noted that the tariffs discussed are relatively small. "We are in an information gap before the earnings season, and right now any small thing could move the markets until we have something substantial to sink our teeth into."
"The sentiment in continental Europe holds up well, considering the growing tensions between Washington, DC and Brussels in relation to the threat of $ 11 billion duties imposed on European imports," wrote David Madden, market analyst at CMC Markets , in a research note.
What titles were in focus?
The Apple company.
it sold its first gains to 0.3%, completing its nine-day winning streak as its effort to recover $ 1 billion in market capitalization took a break.
Shares of Wynn Resorts Ltd.
fell by 3.9% after the company closed its Crown Resorts Australia buying talks.
Paris shares listed Airbus SE
they were out of 1.9% amid the US tariff threat. Shares listed in the United States
Avaya Holdings Corp.
AVYA, + 4.17%
shares gained 4.2% after Bloomberg reported that the communications software company is organizing a sales process for the company, following the receipt of unsolicited offers.
General Electric Co.
shares fell 2.9% a day after J.P., an analyst at Morgan, Stephen Tusa, downgraded the stock.
Shares of American Airlines Group Inc.
fell 1.7% after the company cut the first quarter guidelines.
How were other markets traded?
The Asian markets closed on a mixed note, with the Japanese Nikkei 225
NIK, + 0.19%
adding 0.2%, the Hang Seng index from Hong Kong
HSI, + 0.27%
up 0.3%, while the Shanghai composite index
lost 0.2%. European stocks were lower, with Stoxx Europe 600
In the commodity markets, the price of oil
withdrawn from the five-month highs, while gold futures
GCM9, + 0.48%
placed higher. The United States dollar
it was mostly unchanged.
– Mark DeCambre contributed to this report
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