New York (AFP)

Wall Street ended sharply lower on Tuesday, weakened by new tumults on the trade front between China and the United States and an indicator showing a contraction of manufacturing activity in the United States.

The leading index of the New York Stock Exchange, the Dow Jones Industrial Average, fell 1.08% to finish at 26,118.02 points and Nasdaq, with strong technological color, lost 1.11% to close at 7.874, 16 points.

The broad S & P 500 index fell 0.69% to 2,906.27 points.

Before the extended weekend of a holiday Monday, "investors hoped that the new tariffs (entered into force Sunday, Ed) would be postponed to allow negotiations to continue," said Sam Stovall, CFRA.

But additional tariffs of 15% on part of the $ 300 billion of goods imported from China previously untouched by previous measures have been implemented.

And shortly before the opening of the Wall Street session on Tuesday, "Donald Trump has threatened even more strongly China," said Stovall.

The tenant of the White House has on Tuesday warned the Asian giant against the temptation to play the clock in trade negotiations, warning Beijing of an even tougher trade war if he was re-elected.

China retorted by also increasing some tariffs and announcing Monday the filing of a complaint to the World Trade Organization (WTO).

The standoff in which the first two world economic powers have been engaged for more than a year does not seem to be losing momentum, fueling investors' fears of economic growth.

Latest illustration: Manufacturing activity in the United States contracted in August, for the first time in three years, according to the index of the professional association ISM.

The publication of this statistic early in the session pushed Wall Street indices, already in the red, to deepen their losses.

However, said Stovall, "manufacturing activity accounts for only 10% of activity in the US Activity in services is not yet in contraction".

In addition to trade tensions on Tuesday, there were several other sources of concern for investors, including continued uncertainty over Brexit, the political crisis in Hong Kong, or the passage of powerful Hurricane Dorian near the southeastern coast. the United States.

On the bond market, the 10-year rate on the US debt was declining, moving to 20:20 GMT to 1.469% against 1.496% at the close on Friday.

© 2019 AFP