U.S. stocks were soaked in early trading on Wednesday, with the Dow Jones Industrial Average, S&P 500 and Nasdaq Composite falling amid new unrest over trade tensions between China and the US.
As inventory made some profits earlier in the day, the pensive mood of Wall Street burned beyond chips at the central stage and opened to the market.
The Dow Jones Industrial Average fell 300 points, a 0.7% drop, while the S&P 500 slipped 0.53%. The Nasdaq also traded in red, opening 0.57% lower.
The decline in the Dow, Nasdaq and S&P 500, which snapped a six-day winning streak, is as investors respond to the latest developments in US-China trade relations.
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Stocks especially recovered when two world economy giants signaled an agreement to a trade ceasefire.
But concerns about the US deficit, which keeps Moody in sight, coupled with overall uncertainty on the macroeconomic front, are burning bullish momentum. Chips-related discrepancies now add to these concerns, with chipmaker Nvidia stocks down 0.6%.
The US Treasury has risen as tariffs focused again on the table. The Treasury yield in 2010 has returned above the psychological level of 5%, but the 10-year yield has exceeded 4.5%.
While risk and uncertainty continues to rise, Derek Chollet, head of JPMorgan’s Geopolitics Center, told CNBC that investors still have opportunities amid all the shortcoming actions.
“We are in a time of incredible risk and uncertainty,” says Derek Chollet, director of JPMorganchase’s Geopolitics Center. “But of all the flaws, I still think there are great opportunities.” https://t.co/gfgdbm8dci
– Squawk Box (@squawkcnbc) May 21, 2025
Sensation across the risk assets market has been cut in part by Bitcoin (BTC) after it exceeded $108,000 during the European trading session. Gold rose 0.7% to $3,307.
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