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US markets end lower as US considers limiting China investment

28 Sep 2019 Evaluate

Extending their previous session’s losses, the US markets ended lower on Friday on reports that Trump administration officials are discussing ways to limit US investors' portfolio flows into China. The move will have repercussions for billions of dollars in investment pegged to major indexes. The reports reflect the ever-changing landscape of US-China relations that has kept traders reluctant to make significant bets. On the economic data front, Consumer sentiment in the US rebounded by more than initially estimated in the month of September, according to a report released by the University of Michigan. The report said the consumer sentiment index for September was upwardly revised to 93.2 from the preliminary reading of 92.0. Street had expected the index to be unrevised. With the unexpected upward revision, the consumer sentiment index showed a notable increase from a three-year low of 89.8 in August.

Besides, Durable goods orders in the US unexpectedly showed a modest increase in the month of August, according to a report released by the Commerce Department. The Commerce Department said durable goods orders rose by 0.2 percent in August after jumping by 2.0 percent in July. The continued increase surprised participants, who had expected orders to slump by 1.0 percent. Orders for transportation equipment pulled back after leading the spike in the previous month, but the drop was more than offset by increases in other categories. Meanwhile, a report released by the Commerce Department showed US personal income rose in line with street estimates in the month of August, although personal spending inched up by less than expected. The Commerce Department said personal income climbed by 0.4 percent in August after ticking up by 0.1 percent in July. The increase in income matched economist estimates.

Dow Jones Industrial Average fell 70.87 points or 0.26 percent to 26820.25, Nasdaq declined 91.03 points or 1.13 percent to 7939.63 and S&P 500 was down by 15.83 points or 0.53 percent to 2961.79.

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