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US markets end in red on renewed trade war fears

10 Aug 2019 Evaluate

The US markets settled lower on Friday after President Donald Trump indicated he is not ready to make a trade deal with China, suggesting the US could skip the next round of trade talks in September. Trump also said the US is not going to do business with Chinese tech giant Huawei. The comments from Trump came after a report said his administration is holding off on decisions about licenses for US companies to restart business with Huawei. Trump previously said his administration would make timely licensing decisions but has reportedly decided to delay the decisions in response to China halting its purchases of US agricultural products. China decided to stop buying US agricultural products in retaliation against Trump's announcement last week that he plans to impose a 10 percent tariff on the remaining $300 billion worth of Chinese imports.

On the economic front, largely reflecting a rebound in energy prices, the Labor Department released a report showing a modest increase in US producer prices in the month of July. The Labor Department said its producer price index for final demand rose by 0.2 percent in July after inching up by 0.1 percent in both May and June. The uptick in prices matched Street estimates. Meanwhile, the report said core producer prices, which exclude food and energy prices, edged down by 0.1 percent in July after climbing by 0.3 percent in June. The modest pullback in core producer prices came as a surprise to participants, who had expected core prices to rise by 0.2 percent.

Dow Jones Industrial Average dropped 90.75 points or 0.34 percent to 26287.44, Nasdaq declined 80.02 points or 1.00 percent to 7959.14 and S&P 500 was down by 19.44 points or 0.66 percent to 2918.65. 

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