New York (AFP)
Wall Street retreated Tuesday, still on guard against the risks of military escalation between the United States and Iran and despite indicators deemed reassuring for the American economy.
Its flagship index, the Dow Jones Industrial Average, fell 0.42% to 28,583.68 points.
The highly technological Nasdaq fell 0.03% to 9,068.58 points, and the broad S&P 500 index 0.28% to 3,237.18 points.
Investors continued to assess the effects of the US assassination of a powerful Iranian general on Friday.
After the death of General Qassem Soleimani, the Iraqi Parliament indeed adopted a resolution calling for the end of the presence of American troops in the country, a vote which led the United States to brandish the threat of sanctions against Baghdad.
President Donald Trump also threatened to strike 52 targeted sites in Iran on Sunday if the Islamic Republic attacks US personnel or sites in retaliation. For its part, Tehran has brandished the threat of a further reduction of its commitments under the international agreement on its nuclear program.
"On the one hand, we still do not know how to interpret this situation with Iran. On the other, the economic data cannot be ignored," observes Chris Low of FHN Financial.
Activity in services rebounded more than expected in December, the non-manufacturing index standing at 55% while analysts expected less sustained growth, at 54.3%.
The U.S. trade deficit fell sharply in November, falling to its lowest level since October 2016, as a result of a further decline in imports from China.
Low said the drop in the trade deficit, coupled with low inflation in the United States, is "a recipe for higher wages and higher profits".
On the bond market, the 10-year rate on the US debt was rising, settling around 9:20 pm GMT at 1.823%, against 1.809% the day before at the close.
© 2020 AFP