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Tuesday, 03 December 2019 12:33

Wall Street sinks as Trump hints at delay in trade deal with China

Written by Reuters
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(Reuters) - Wall Street fell more than 1% and the benchmark S&P 500 hit a near one-month low on Tuesday, as comments from President Donald Trump and Commerce Secretary Wilbur Ross stoked fears of a significant delay in resolving a trade dispute with China.

Speaking to reporters in London where Trump was attending a meeting of NATO leaders, he raised the possibility of the trade deal being delayed until after the U.S. presidential elections in November 2020.

Ross told CNBC that planned tariffs on Chinese imports will be imposed on Dec. 15 unless there is some real reason to postpone, such as substantive progress in talks.

Nine of the 11 major S&P 500 sectors were trading lower, with tech heavyweights Apple Inc (AAPL.O) and Microsoft Corp (MSFT.O) weighing the most.

The trade-sensitive Philadelphia Semiconductor index .SOX dropped 2.4% to hit an over one-month low.

Tuesday’s declines added to the pullback in the previous session, from record highs hit last week, on hopes that the two sides will hammer out a “phase one” deal soon, and signaled a rough start to the month.

“This is sort of a last-minute negotiation tactic,” said Robert Pavlik, chief investment strategist and senior portfolio manager at SlateStone Wealth LLC in New York.

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