Home »Stocks and Bonds » World » Friday’s early afternoon trade: stocks drops as White House weighs delisting Chinese companies
US stocks slipped on Friday after news that the Trump administration was considering delisting Chinese companies from US stock exchanges and limit US investments into China. US-listed shares of Alibaba Group Holding Ltd, Baidu Inc and JD.com Inc slipped between 4% and 7% on the news. The tariff-sensitive Philadelphia semiconductor index extended its decline to 1.7%. The index was already under pressure from Micron Technology Inc's 10% tumble after forecasting a disappointing first-quarter profit.

The S&P technology sector slipped 1.2%, the most among the 11 major S&P sectors. High-level trade talks between Washington and Beijing are scheduled for next month before the start of the third-quarter earnings season. "You never know if it's a ploy to get some leverage on those talks ... it could be just trying to rile up the base, but at face value, it's going to be a bit of a negative for the markets," said Scott Brown, chief economist at Raymond James in St. Petersburg, Florida.

The three main indexes are set to end a volatile week slightly lower, after conflicting headlines about US-China trade and as US Democrats launched an impeachment investigation on President Donald Trump. Shares of Wells Fargo & Co rose 4.1% and were the top gainers on the S&P 500 after the lender named banking veteran Charles Scharf as chief executive officer. The banking sub-sector rose 1.2%. At 13:14 ET, the Dow Jones Industrial Average was down 47.87 points, or 0.18%, at 26,843.25, the S&P 500 was down 14.31 points, or 0.48%, at 2,963.31. The Nasdaq Composite was down 79.54 points, or 0.99%, at 7,951.12.

Copyright Reuters, 2019


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