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Wall Street ends nearly flat as US-China trade war fears spook already skittish investors

Last updated: 16:08 08 Aug 2018 EDT, First published: 10:07 08 Aug 2018 EDT

Wall Street

Wall Street stocks finished mixed on Wednesday, having recouped most of its losses caused by the fear that China's move to slap new tariffs on US products would exacerbate the trade dispute between the world's two biggest economies.

China retaliated against the US in tit-for-tat tariffs and a fall in benchmark oil prices added to the glum mood in the markets.

The Dow Jones Industrial Average shed 0.18% or 45 points to end at 25,583.

The S&P 500 barely budged, slipping 0.03% to settle at 2,857. The tech-heavy Nasdaq rose by 0.06% to end at 7,888.

The small-cap Russell 2000 index was also 0.03% weaker to conclude at 1,687.

In Canada, Toronto's TSX gained 0.18% to close at 16,315.

Stocks from Boeing to Caterpillar which are vulnerable to a China-US trade clash finished in the red for the session.  

12:30 pm US benchmarks still in a sea of red as fears rebound about a US-China trade war

US stocks slipped further into the red in afternoon trade as China’s move to slap new tariffs on US goods continued to weigh on markets.

China’s introduction of a 25% tax on US$16bn worth of US goods, which include cars and motorcycles as well as fuel still served to drag markets in a backwards direction.

A second concern weighing on the trading period was the fall in the price of West Texas Intermediate oil, which fell 2% to US$67.79 on the back of the trade crisis.

As the afternoon session kicked off, the Dow Jones Industrial Average index shed 61 points, led lower by international exporters with Chinese exposure including Caterpillar Inc. Boeing, Exxon Mobil and Chevron. Walt Disney also shed 1.5% a day after its fiscal third-quarter earnings and revenue fell short of analysts’ projections.

The S&P 500, meanwhile, performed a bit better and hugged the baseline, but it lost nearly 2 points to hover at 2,856. The tech-laden Nasdaq, meanwhile, made its way into the green and gained 6.5 points to 7,890.

Elsewhere, the Russell 2000 index of small-cap stocks held steady, losing just 3.5 points to trade at 1,684.

Up in Canada, Toronto's TSX fell back, but stayed in positive territory, adding 3.37 points to hover at 16,289.

10:07: Wall Street opens muted as US, China dig in for trade fight

US stocks opened lower Wednesday after China retaliated to Washington's latest tariffs, obscuring a strong batch of corporate earnings. Both countries have sparred over trade, in a tit-for-tat skirmish that has shown little sign of easing up.

High-level talks between Washington and Beijing have stalled, while both sides have been threatening further tariffs in the past week. China will impose tariffs on an additional US$16bn worth of US products. The 25% tariffs will go into effect August 23, targeting cars, crude oil, natural gas and coal.

The Trump administration also completed plans Tuesday to impose tariffs on an additional US$16bn of Chinese imports, and brings the total amount of Chinese goods covered by tariffs to US$50bn.

The Dow Jones Industrial Average fell 34.52 points, or 0.13%, at the open to 25,594.39 led lower by Walt Disney Co and Caterpillar Inc.

The S&P 500 opened lower by 2.36 points, or 0.10%, to 2,855. Still, the broad-market stock benchmark is within 1% of its January 16 record, and if it closes in the green for a fifth straight session it would represent the lengthiest string of gains since a six-session streak ended February 16. 

The Nasdaq Composite dropped 10.31 points, or 0.10%, to 7,876 at the opening bell led lower by Mylan NV and Regeneron Pharmaceuticals Inc.

Elsewhere, the Russell 2000 index of small-cap stocks was flat at 1,686.39, while the Toronto Stock Exchange index gained 16.62 points, or 0.10% to 16,269.68.

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