rain.png
Thursday May 28th, 2020 3:49AM

Stocks end lower on Wall Street as US-China tensions weigh

By The Associated Press
Related Articles
  Contact Editor

Stocks are ending lower on Wall Street as tensions flared again between the U.S. and China and as more dismal news came out detailing economic fallout from the coronavirus pandemic. The S&P 500 gave up 0.8% Thursday, but it’s still higher for the week. The White House issued a report attacking Beijing’s economic policies and human rights violations, expanding on President Donald Trump’s get-tough rhetoric that he hopes will resonate with voters angry about China’s handling of the outbreak. Meanwhile, the number of Americans thrown out of work since the virus struck climbed to nearly 39 million.

THIS IS A BREAKING NEWS UPDATE. AP’s earlier story is below:

Stocks moved broadly lower on Wall Street in late-afternoon trading Thursday, placing the market on track to give back some of its gains after a solid rally a day earlier.

The S&P 500 was down 0.7% in choppy trading as investors weighed more dismal news about the economic fallout from the coronavirus epidemic and the latest buildup of tensions between the U.S. and China. Bond yields were mixed. Oil prices rose.

The Labor Department said more than 2.4 million people applied for U.S. unemployment benefits last week in the latest wave of layoffs from the outbreak. That brings the running total of Americans who have lost their jobs in the two months since the coronavirus led to a near shutdown of the economy to 38.6 million.

Meanwhile, investors had an eye on the latest flareup in tensions between Washington and Beijing. The White House issued a report attacking China's economic and military policies, and its human rights violations. The report expands on President Donald Trump’s get-tough rhetoric that he hopes will resonate with voters angry about China’s handling of the disease outbreak.

The Dow Jones Industrial Average fell 96 points, or 0.4%, to 24,478. The Nasdaq composite slid 0.7%. Small-company stocks, which have notched the biggest gains this week, rose. The Russell 2000 index gained 0.2%.

Technology and health care stocks took some of the heaviest losses. Only industrial sector stocks and household goods makers held onto gains. Homebuilders were broadly higher.

“It really looks like a little bit of weakness ahead of the long holiday weekend,” said Ryan Detrick, senior market strategist for LPL Financial. U.S. markets will be closed Monday for Memorial Day.

Wall Street is on track to recoup its losses from last week amid fresh hopes for a U.S. economic recovery in the second half of the year and optimism about a potential vaccine for COVID-19. A strong rally on Monday reversed all of the market’s losses for the month. The index is still down about 11.5% from its all-time high in February.

Investors are betting that the economy and corporate profits will begin to recover from the coronavirus pandemic as the U.S. and countries around the world slowly open up again. However, concerns remain that the relaxing of stay-at-home mandates and the reopening of businesses could lead to another surge in infections, potentially ushering in another wave of shutdowns.

“Clearly we’re all going to be anticipating how things slowly start to open up to see exactly what happens with cases over the next several weeks,” Detrick said.

The National Association of Realtors said sales of previously occupied U.S. homes plunged 17.8% in April as the housing market remained hobbled by the coronavirus shutdowns. The downbeat report didn't hurt homebuilder stocks, which climbed broadly. The pullback in sales came as the inventory of properties on the market fell to a record low last month. A drop in homes for sale favors builders because it represents less competition. Meanwhile, Freddie Mac said mortgage rates eased this week, another favorable trend for builders. KB Home led the sector, gaining 5.6%.

Oil prices closed higher for the sixth day day in a row. Benchmark U.S. crude oil for July delivery rose 43 cents, or 1.3%, to settle at $33.92 a barrel. July Brent crude oil, the international standard, gained 31 cents, or 0.9%, to close at $36.06 a barrel.

Crude oil started the year at about $60 a barrel, but plummeted earlier this year as demand sank due to widespread travel and business shutdowns related to the coronavirus. The price has risen this month as oil producing nations cut back on output and the gradual reopening of economies around the globe have driven up demand.

Bonds yields were mixed. The yield on the 10-year Treasury note, a benchmark for interest rates on many consumer loans, was holding steady at 0.68% after an early slide.

European stock indexes closed broadly lower after shedding some gains. Asian stock markets finished lower.

  • Associated Categories: Associated Press (AP), AP Business, AP Business - Economy, AP Business - Financial Markets, AP Business - Industries, AP Business - Utilities, AP Business - Real Estate
© Copyright 2020 AccessWDUN.com
All rights reserved. This material may not be published, broadcast, rewritten, or redistributed without permission.
Lessons from 1918: Old pandemic is a murky guide for sports
A century ago, college sports in the United States was hit hard by the Spanish flu pandemic
4:27PM ( 7 minutes ago )
Coronavirus-triggered layoffs in US hit nearly 39 million
The U.S. government says the number of Americans thrown out of a job since the coronavirus crisis struck two months ago has climbed to nearly 39 million, even as states from coast to coast gradually reopen their economies and put people back to work
4:24PM ( 10 minutes ago )
'Truly devastating': Michigan officials assess flood damage
Authorities are warning it could take days to fully assess damage from flooding that submerged houses, washed out roads and threatened a Superfund site in Central Michigan
4:21PM ( 13 minutes ago )
Associated Press (AP)
Trump: US may rethink decision to exit surveillance treaty
President Donald Trump says Russian violations make it untenable for the U.S. to stay in a treaty that permits 30-plus nations to conduct observation flights over each other’s territory
3:59PM ( 35 minutes ago )
Pandemic highlights big box stores' ability to pivot
Big box stores like Best Buy,Target, Walmart and others have been able to capitalize on their digital expertise and stay relevant during the pandemic
3:52PM ( 42 minutes ago )
China may pass bill to crack down on Hong Kong opposition
A spokesperson says China’s ceremonial parliament will consider a bill that could limit opposition activity in Hong Kong
3:51PM ( 43 minutes ago )
AP Business
AP-NORC poll: State and U.S. government virus approval dips
Views of how government at all levels is handling the coronavirus outbreak in the U.S. have deteriorated somewhat over the past month, as a growing minority of Americans prefer that states lift restrictions on social and economic life
2:20PM ( 2 hours ago )
Homebuilders climb even as housing outlook remains cloudy
The U.S. economy and housing market had set homebuilders up for a strong 2020
2:01PM ( 2 hours ago )
Georgia budget proposals would cut workers, reduce services
A 14% cut in state spending in Georgia would lead to more than a thousand employees being laid off or bought out
1:32PM ( 3 hours ago )
AP Business - Economy
The Latest: Scotland leader gives ‘map’ for easing lockdown
Scotland’s leader has presented a “map” for easing coronavirus restrictions in the months ahead while observing social distancing guidelines
10:18AM ( 6 hours ago )
Stocks struggle higher amid more grim news on the economy
Stocks struggled to hold on to tiny gains in early trading on Wall Street Thursday after shaking off an early loss
9:41AM ( 6 hours ago )
The Latest: Lowered flags urged at 100,000 US virus deaths
The top Democratic leaders are urging President Donald Trump to fly flags at half-staff on all public buildings when the U.S. coronavirus death toll reaches 100,000
9:21AM ( 7 hours ago )
AP Business - Financial Markets
Amid pandemic politics, Trump heads to Michigan Ford plant
Pandemic politics are shadowing President Donald Trump’s trip to Michigan
1:25PM ( 3 hours ago )
Deadly cyclone cuts destructive path in India and Bangladesh
Wide areas of coastal India and Bangladesh are flooded and millions of people are without power after Cyclone Amphan struck the region
12:55PM ( 3 hours ago )
Virus cases spike in California county on Mexican border
As much of California reopens businesses amid easing coronavirus conditions, a farming region bordering Mexico is struggling with a spike in cases
12:39PM ( 3 hours ago )
AP Business - Industries
Michigan dam had repeated safety violations before flooding
A hydroelectric dam that failed to hold back floodwaters this week in Michigan was the target of lengthy investigations by federal regulators
11:43PM ( 16 hours ago )
Stocks close higher as investors regain some more confidence
Stocks posted solid gains on Wall Street Wednesday, erasing their losses from a day earlier
4:09PM ( 1 day ago )
Democrats decry 'pandemic of pollution' under Trump's EPA
Democrats are blasting the Trump administration’s moves to roll back environmental regulations during the coronavirus crisis
3:49PM ( 1 day ago )
AP Business - Utilities
US home construction drops 30.2% in April as virus rages
U.S. home building plunged again in April, taken down by economic fallout from the coronavirus pandemic
9:30AM ( 2 days ago )
Cost of spreading virus weighed on Home Depot in early 2020
The cost of the spreading coronavirus pandemic dragged on profits early in the year at Home Depot
6:56AM ( 2 days ago )
Cost spreading virus weighed on Home Depot in early 2020
The cost of the spreading coronavirus pandemic dragged on profits early in the year at Home Depot
6:37AM ( 2 days ago )
AP Business - Real Estate
Lessons from 1918: Old pandemic is a murky guide for sports
A century ago, college sports in the United States was hit hard by the Spanish flu pandemic
4:27PM ( 8 minutes ago )
Coronavirus-triggered layoffs in US hit nearly 39 million
The U.S. government says the number of Americans thrown out of a job since the coronavirus crisis struck two months ago has climbed to nearly 39 million, even as states from coast to coast gradually reopen their economies and put people back to work
4:24PM ( 11 minutes ago )
'Truly devastating': Michigan officials assess flood damage
Authorities are warning it could take days to fully assess damage from flooding that submerged houses, washed out roads and threatened a Superfund site in Central Michigan
4:21PM ( 13 minutes ago )
US seeking industry cooperation on future medical supplies
U.S. officials are invoking a rarely used provision of American law to help keep the country from again running out of medical supplies in a pandemic
4:16PM ( 18 minutes ago )
Coronavirus data used in decision to reopen Georgia flawed
Data on coronavirus infections that was a key driver in Georgia Gov. Brian Kemp’s aggressive push to reopen the state was flawed and may have distorted perceptions of progress against the virus
4:16PM ( 18 minutes ago )