New York (AFP)
The NYSE was retreating on Tuesday as investors worried that the announcement of new US sanctions against Chinese entities could thwart future trade talks.
Its flagship index, the Dow Jones Industrial Average, fell by 0.91%, to 26,235.96 points, around 13:45 GMT.
The Nasdaq, with strong technological color, yielded 0.94%, at 7,881.53 points, and the expanded index S & P 500 lost 0.97%, to 2,910.38 points.
Wall Street had already finished in the red Monday after a hesitant session, being cautious about the approach of a new session of talks between Washington and Beijing: the Dow Jones had dropped 0.36% and the Nasdaq 0.33%.
The US Department of Commerce announced on Monday night that it has placed 28 blacklisted government and commercial organizations in China, accusing them of being involved in the authorities' crackdown on the Muslim Uyghur minority.
Unsurprisingly, the Chinese reaction was lively, with Beijing expressing through its spokesman, Geng Shuang, his "strong dissatisfaction and resolute opposition."
The number of companies affected by US sanctions, eight, "is not very important," says Patrick O'Hare of Briefing. "But the timing of this announcement is not insignificant as a Chinese delegation arrives in Washington to try to negotiate a trade deal that can ease tensions between the United States and China," he said. he
"This decision is bothering the market because it could compromise the possibility of achieving a + good + or + full + agreement," says the expert.
But "trade tensions and tariffs are already weighing on the gross domestic product of both economies and affect the profits of companies," says Art Hogan of National Holding. "Nearly 70% of S & P 500 companies last quarter cited business uncertainties as their main source of concern and the reason for their cautious forecasts," he recalls.
In the bond market, the 10-year rate on US debt rose to 20:30 GMT to 1.561% against 1.529% at the close on Friday.
© 2019 AFP