Economics
Stocks Slide on Powell Remarks, U.S.-China Worries: Markets Wrap
- Powell says virus poses lasting harm, more may need to be done
- Federal savings plan delays transfer to fund with China stocks
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U.S. stocks slumped to a three-week low after Jerome Powell warned economic risks from the virus are significant and tensions with China flared. Treasuries and the dollar advanced.
The S&P 500 briefly fell below 2,800 -- a level that has provided support in the past month -- after the Federal Reserve chairman said the threat of a lasting downturn can deepen without additional government spending. Equities also dropped after a federal savings plan delayed moving funds into an index with Chinese stocks, adding to tensions stoked by President Donald Trump. After the close of regular trading, Cisco Systems Inc. gave a sales forecast that beat Wall Street expectations, sending shares higher.