Wall Street reverses loss after trade remarks

“Across all sectors you see the market bouncing up and down and being very unsettled. And it’s primarily the tariff issue overhanging the market.”

General Motors shares dropped 2.5 per cent after Trump warned subsidies could be cut after the automaker said it would shutter US plants and lay off thousands of workers.

Wall Street finished in positive territory.Credit:AP

“The GM thing is a war of words,” Ghriskey said.

“Here’s a company trying to react to the market environment … and they’re being criticised for it.”

The Dow Jones Industrial Average rose 108.49 points, or 0.44 per cent, to 24,748.73, the S&P 500 gained 8.75 points, or 0.33 per cent, to 2,682.2 and the Nasdaq Composite added 0.85 point, or 0.01 per cent, to 7,082.70.

Of the 11 major sectors in the S&P 500, all but three closed the session in positive territory.

Healthcare was the biggest percentage gainer with a 0.99 per cent increase, followed by gains in defensive sectors such as consumer staples , utilities and real estate.

Trade-sensitive industrials and materials sectors were down, as was energy.

US steel company stocks dropped as China’s steel sector slid into bear territory, with the benchmark rebar contract down more than 20 per cent from its 2018 peak. US Steel Corp slid 8.3 per cent, while AK Steel Holdings fell 4.6 per cent.

United Technologies Corp dropped 4.1 per cent following its announcement late Monday that it would divide its aerospace, elevators and building segments into three discrete companies.

Federal Reserve Chairman Jerome Powell is expected to speak on Wednesday, and investors will scrutinise his comments over US economic health and trade concerns.

Volume on US exchanges was 6.79 billion shares, compared with the 7.90 billion- share average over the last 20 trading days.

Reuters

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