Wall Street sinks on US data and trade war angst
|- DJIA, lost 21 points, or 0.1%, to end around 27,004.
- The S&P 500 slid 0.2% ended near 2,990.
- Nasdaq Composite ended lower by 0.3% to end near 8,124.
US benchmarks were under pressure on Wall Street on Wednesday as investors concerns over trade wars as well as domestic economic data take their toll. The first drop in retail sales figures in seven months along with reports that China has threatened to retaliate over US Congress backing pro-democracy protesters in Hong Kong weighed on US stocks.
Subsequently, the Dow Jones Industrial Average, DJIA, lost 21 points, or 0.1%, to end around 27,004. The S&P 500 slid 0.2% to finish near 2,990 while the Nasdaq Composite ended lower by 0.3% to end near 8,124.
With respect to US Retail Sales, only five out of 13 sub-categories rose."In spite of upward revisions to August and flat control group sales, there will be some concern that the buoyancy of the US consumer may be starting to crack. The data added to expectations that the FOMC may cut rates 25bp at the late October meeting," analysts at ANZ Bank argued.
Trade war angst back on the table
Meanwhile, the U.S. House of Representatives passed three measures in support of the protests in Hong Kong, and Beijing responded on Wednesday saying it will retaliate if the bills pass into law – Foreign Ministry spokesman Geng Shuang said, "China will definitely take strong countermeasures in response to the wrong decisions by the U.S. side to defend its sovereignty, security and development interests."
DJIA levels
The index managed hold in the 27000s, consolidating for the main part while bulls weigh prospects of an advance towards the key 27500s targets on a break of the 27200s and trend line resistance which guards a run to the July highs, albeit still somewhat over the horizon, for the time being. Bears will otherwise now seek a close back below the trendline with a focus back on the 200-DMA down in the 26400s.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.