Stocks Again Negative after Early June Rally

(MENAFN – Baystreet.ca)
Stocks fell for a second day on Wednesday as Wall Street took a pause following a strong rally to kick off June.
The Dow Jones Industrial Average faltered 69.97 points to 25,978.54
The S&P 500 was down 9.2 points at 2,876.52.
The NASDAQ Composite slid 39.96 points to 7,782.61.
Chipmakers contributed to the decline. Lam Research lost 5%. Applied Materials, KLA-Tencor and Teradyne also fell. Semiconductor stocks were pressured after an Evercore ISI analyst said a recovery in the space will likely be pushed back to the second half of 2020.
Bank shares fell along with Treasury yields. Citigroup dropped 0.8% while J.P. Morgan Chase gave back 1%, and Bank of America slid 0.7%.
Still, the major indexes were all up nearly 5% for the month, rebounding from a sharp selloff in May as U.S.-Mexico trade worries were quelled while expectations for looser monetary policy increased.
Market focus remained largely attuned to global trade developments on Wednesday, after President Donald Trump said Tuesday that he was holding up a trade deal with China and had no interest in moving ahead unless Beijing agreed on as many as five “major points.” Trump did not specify these trade issues.
Washington and Beijing have imposed tariffs on billions of dollars’ worth of one another’s goods since the start of 2018, battering financial markets and souring business and consumer sentiment.
Wall Street also kept on economic data as investors increasingly price in a rate cut from the Federal Reserve. Market expectations for lower rates by July were at 85.3% on Wednesday. Low inflation, coupled with weak economic data, led to the possibility of lower Fed rates.
Consumer prices south of the border rose just 0.1% last month, matching estimates, the U.S. Labor Department said Wednesday. Core inflation, which strips out volatile components like food and energy prices, also rose 0.1%. The muted

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