Stocks closed lower on Thursday, erasing solid gains from earlier in the day, on US-China tensions. The sell-off began when President Donald Trump said he would be giving a news conference on Friday regarding China.
The Dow Jones Industrial Average fell 147 points, or 0.6%. At its session high, the Dow was up 210 points. The S&P 500 slid 0.2%, giving back a jump of 1%. The Nasdaq Composite dropped 0.5%. Thursday’s losses were the Dow’s first in three days. The Nasdaq and S&P 500 both snapped three-day winning streaks.
Trump’s announcement came after China’s National People’s Congress approved a national security bill for Hong Kong. The bill will bypass Hong Kong’s legislature, raising concerns over the longevity of Hong Kong’s “one party, two systems” principle, which allows additional freedoms mainland China does not have.
Facebook and Netflix fell more than 1% each while Amazon and Alphabet posted small losses. Bank stocks gave back some of their strong gains for the week. Citigroup dropped 5.9% while Bank of America declined by 4.3%. Wells Fargo dipped 2.6% and JPMorgan Chase slipped 1.5%.
MacDailyNews Note: Amid additional US-China tensions, Apple closed the day up fractionally with 1.379T market cap of $1.379 trillion, making Apple the world’s most valuable public company at the close over Microsoft ($1.376 trillion).