U.S. stocks tumble amid worries over possible economic slowdown

US markets sink on worries over slowing growth, trade truce outcome

Mr Trump undermined fragile investor confidence in his 90-day truce with Beijing, which prompted a Wall Street relief rally on Monday, by branding...

Stocks fell sharply on Wall Street Tuesday as traders anxious that the US and China made less progress than originally thought on defusing their dispute over trade.

The Dow Jones Industrial Average lost 3.1 per cent to 25,027 the S&P 500 dropped 3.2 per cent to 2,700 and the NASDAQ plunged 3.8 per cent to 7158.

The S&P 500 lost 90 points, or 3.2 percent, to 2,700. The Nasdaq Composite dropped 33.57 points, or 0.45 per cent, to 7,407.95 at the opening bell. Kitco Metals Inc. and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication. The FTSE 100 in Britain lost 2.2 percent to 6,767.

US markets remained closed on Wednesday as part of a National Day of Mourning for the passing of former 41st President George H.W. Bush.

Markets in Europe also fell. While the Chinese Foreign Ministry acknowledged that further talks on tariffs would proceed, Beijing has yet to corroborate details on any major parts of the trade agreement, with Chinese state media avoiding any reference to a 90-day condition, nor did it mention an agreement to unilaterally reduce auto tariffs.

Shares had rallied Monday following President Donald Trump's agreement with his Chinese counterpart Xi Jinping over the weekend to hold off on further retaliatory moves in a festering trade war.

Declining issues outnumbered advancers for a 3.73-to-1 ratio on the NYSE and a 4.66-to-1 ratio on the Nasdaq.

Defensive Utilities .SPLRCU eked out a 0.2 percent gain, the only one of the 11 major S&P 500 sectors in positive territory.

The trade dispute has rattled markets in recent months as signs emerged that it has begun affecting corporate profits. -China trade talks. The inversion of a portion of the Treasury yield curve for the first time since 2007 reinforced the impression that markets are approaching the end of the current cycle. The slide in bond yields, which affect interest rates on mortgages and other consumer loans, weighed on bank stocks. Morgan Stanley analysts said in a note that the market was underestimating the challenge those companies would face from Amazon Air.

Oil prices headed higher ahead of an OPEC meeting on Thursday, where members are expected to agree to cut output in 2019. Benchmark U.S. crude rose 0.6 percent to $53.27 per barrel in NY.

Brent crude, the global standard, added 0.6 percent to close at $62.08 per barrel in London. The euro declined to $1.1330 from $1.1343. The British pound fell to $1.2716 from $1.2728.

The Nasdaq is down 172.11 points, or 2.3 percent. Germany's DAX lost 1.1 per cent, while France's CAC 40 dropped 0.8 per cent.

Gold gained 0.6 percent to $1,246.60 an ounce.

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