Business Traders work on the floor of the New York Stock Exchange. (AP Photo/Richard Drew) 18 May 2018 05:06AM(Updated: 18 May 2018 05:10AM) Share this content
NEW YORK: Wall Street closed in the red on Thursday (May 17) after a topsy-turvy trading day in which investors were buffeted by a flurry of news on trade and rising oil prices.
After opening lower, stocks turned positive but then headed south again shortly after President Donald Trump cast doubt on the chances that current trade talks with China would succeed.
The benchmark Dow Jones Industrial Average fell 54.95 points (0.22 per cent) to 24,713.98.
The broader S&P 500 lost 2.33 points (0.09 per cent) to 2,720.13 and the tech-heavy Nasdaq Composite dropped 15.82 points (0.21 per cent) to 7,382.47.
But in a sign that investors could be looking for safe harbour amid geopolitical turmoil, the Russell 2000 – an index of small-cap stocks more insulated from global trade – hit an all-time high.
Karl Haeling of LBBW bank told AFP Thursday’s dip in stocks was more a question “general uncertainty about trade and interest rates” rather than any single concern.
The Russell 2000’s out-performance of the wider market suggested this, he said.
“Given the uncertainty over trade, Iranian sanctions and various other geopolitical hot spots, people are making a bet that US growth will outperform the rest of the world and that these companies will be less affected,” he said.
Worries of reduced Iranian crude production due to renewed US sanctions briefly saw oil prices spike, exacerbating fears of inflation and economic drag, before ending flat.
At the White House on Thursday, Trump lashed out at Europe and China, calling them “spoiled” and openly casting doubt on the chances of a successful deal with Beijing even