Stocks fall as trade concerns spark growth fears

Stocks fall as trade concerns spark growth fears

NEW YORK — U.S. stocks fell on Wednesday, with the S&P 500 and Nasdaq closing just above key support levels, as worries that a lengthy U.S.-China trade war would crimp global growth pushed investors into the safety of government bonds. Trade tensions between the two largest economies in the world showed little signs of relaxing as Chinese newspapers warned that Beijing could use rare earth elements to strike back after President Donald Trump remarked on Monday that he was “not yet ready” to make a deal with China over trade. Rare earths are a group of 17 chemical elements used in everything from high-tech consumer electronics to military equipment. Adding to worries, China’s Huawei Technologies Co. Ltd. filed a lawsuit against the U.S. government late on Tuesday in its latest bid to fight sanctions from Washington. “It is trade and the effect of trade. The problem is right now it is what I call an ‘unquantifiable potential outcome’ — so nobody really knows what is going to happen,” said Sam Stovall, chief investment strategist at CFRA Research in New York. “All we know is there is increasingly heated rhetoric regarding trade and if we are not careful we end up in a trade war that will definitely slow economic growth and possibly push us into recession,” he added. Each of the major U.S. indexes suffered their fourth decline in five sessions. The S&P is down 5.5% from its April 30 closing high. However, both the S&P 500 and Nasdaq […]

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