US stocks fell back into the red on Wednesday, putting equities down for three of the last four sessions as investors reacted to reports of possible new US-China trade frictions.
US chip titan Qualcomm also drove tech shares lower after a federal judge found the company had strangled competition by violating US anti-trust laws.
The benchmark Dow Jones Industrial Average fell 100.72 points (0.39 per cent) to close at 25,776.61, leaving it essentially flat for the week.
Meanwhile, the broader S&P 500 fell 8.09 points (0.28 per cent) to 2,856.27, while the tech-heavy Nasdaq lost 34.88 points (0.45 per cent) to finish at 7,750.84, both turning negative for the week.
Investors were jarred by media reports that President Donald Trump was considering blacklisting the Chinese video surveillance firm Hikvision in a move similar to this month's ban on sales to telecommunications firm Huawei, which likewise battered stocks.
Qualcomm sank 10.9%, extending a string of recent losses after US Judge Lucy Koh ordered the company to change its pricing and sales practices, finding it had engaged in anticompetitive conduct toward customers like Samsung, Sony and Huawei.
Stocks pared some losses after minutes from the Federal Reserve showed policymakers believed the central bank should leave interest rates untouched for the near-term even though risks to the economy had receded.
However, that more sanguine assessment came prior to a recent breakdown in US-China trade negotiations and the resumption of retaliatory tariff measures by both sides.
Shares in retail chain Target jumped 7.8 per cent after the company posted better-than-expected earnings.
In an analyst call, however, the company later joined in warnings from retailers like Walmart, saying that a new round of tariffs on US$300 billion in Chinese imports could leave customers with higher prices but that the company was working to cushion the blow
US Treasury Secretary Steven Mnuchin admitted lawmakers on Wednesday that at least some goods were likely to rise in price as a result of the tariffs in remarks that ran counter to Trump's message.
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REF: US Treasury Secretary Steven Mnuchin admitted lawmakers on Wednesday that at least some goods were likely to rise in price as a result of the tariffs in remarks that ran counter to Trump's message:May 23rd, 2019 - 09:31 am 0
He spoke a little bit too soon:
Warning! The previous comment includes an unsafe link. Follow it at your own risk.May 24th, 2019 - 12:35 am 0