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Stocks Drop Amid Rising China Tension, Job Losses: Markets Wrap

  • Dollar strengthens against most major peers; Gold declines
  • Unemployment figures show another 2.44 million seek benefits
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WATCH: The re-escalation of U.S.-China tensions could cause a market correction, says BlueBay Asset Management’s David Riley.Source: Bloomberg
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U.S. stocks fell as rising trade tension between America and China added to concern about the pace of recovery from the coronavirus pandemic. Crude oil rebounded from an earlier swoon and gold declined.

The S&P 500 declined 0.8%, with signs mounting that President Donald Trump will make his tough-on-China stance a key element of his re-election bid. The energy, technology and utilities sectors led the losses. After rallying as much as 32% from its March bottom, the index failed to hold at its average price over the past 100 days, a key technical level it hasn’t closed above since February. Trade tension with China contributed to market weakness in 2019 before a deal was reached.