On Thursday, despite a robust opening of the session, all three key indices of Wall St. went through a withering sell-off wave at the later-afternoon trading hours and wrapped up the day deeper into the reds, as a bucket of dismal economic data including more than 2 million initial jobless claims last week, alongside the US President Donald Trump’s intransigent push to amend the “Section 230” aimed at making the social networking tycoons such as Facebook and Twitter, accountable for the contents posted on their platforms, had prompted the late-session sell-off.
Apart from that, the US President Donald Trump was also quoted saying at the later part of the day that he would hold a press conference on China’s treatment of Hong Kong as early as by Friday, which in effect had led to a flight-to-safety response for a majority of US investors.
On top of that, following reveal of the executive order to regulate the social networking companies, shares’ prices of Twitter Inc. tottered 4.4 per cent, while the shares of Facebook Inc. had faltered 1.6 per cent.
China tension weighs on US stocks
Citing statistics, as an escalated Sino-US rift had been posing a greater threat to the “Phase One” trade deal between Washington and Beijing, signed off on mid-January this year, the trade-sensitive Dow dropped 0.58 per cent to 25,400.64 and the S&P 500 fell by 0.21 per cent to 3,029.73, while the tech-heavy Nasdaq Composite had curbed out 0.46 per cent to wrap up the session at 9,368.99.
In point of fact, aside from another bucket of baleful economic data alongside the Trump Administration’s latest move to remove a liability safeguard for the social networking companies, growing concerns over Hong Kong had also weighed on the day’s Wall St., as a Thursday remark from the White House economic adviser Larry Kudlow that the China-controlled island city might be treated as an independent nation in terms of trade and other matters, which analysts said could have far-reaching consequences, had added to further worries, raising possibilities of a lower opening of the Friday’s Wall St., suggested analysts.