Wall St. retreats from two-month peak on Sino-US tension, dismal data



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Wall St. retreats from two-month peak on Sino-US tension, dismal data

A gauge of Wall St. stocks had ebbed off, beating a hasty retreat a day after spiking to its two-month highs, as a fresh wind of Sino-US tension alongside another set of slanderous economic data had ratcheted up doubts of an earlier-than-anticipated recovery.

In point of fact, the day's losses in the Wall St. were almost entirely prompted by renewed doubts over a “Phase One” Sino-US trade deal signed off on January 15, while another basket of baleful economic data had poured fresh scorns over investors’ optimism.

Besides, earlier on Thursday, the US Secretary of State Mike Pompeo had ramped up criticisms on China’s handling of the pandemic outbreak, however, trade tensions mounted higher at the later part of the day when the US President Donald Trump had threatened China over its planned national security law to drawdown Hong Kong’s pro-democracy protest.

On top of that, a struggling US labour market with millions of more Americans filing for initial jobless claims alongside a decade-low reading of existing home-sales had added to further strains.

Sino-US tension, China blame-game weigh on Wall St.

Quoting statistics, on Thursday’s (May 21st) Wall St.

closure, Dow fell by 0.41 per cent to 24,474.12 and S&P 500 had shrugged off 0.78 per cent to 2,948.51 while bearing the steepest brunt, the tech-heavy Nasdaq Composite winded down the day 0.97 per cent lower to 9,284.88.

Nonetheless, despite Thursday’s (May 21st) fall back, Nasdaq is hovering around 5 per cent below from its all-time closing highs scored on February 19th, while S&P 500 has been down about 13 per cent from its February 19th record closure.

Aside from that, as China seems to have become an utterly suitable candidate for the Trump Administration’s blame game over the United States’ recent Financial Depression ahead of the November’s US Presidential election, referring to an escalation of Sino-US tension, a co-chief investment officer at TrimTabs Asset Management in New York, Bob Shea said on Thursday’s (May 21st) Wall St.

closure, “It seems like China is going to be used as a punching bag for the upcoming elections. The White House has resolved to itself that it is more effective to swing at China than to salvage what was going to already be a watered-down Phase 1 trade deal. You don’t score any points for that.