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US stocks drop after China escalates tensions with consulate order


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US stocks drop after China escalates tensions with consulate order

} US stocks slipped on Friday after China ordered the closure of the US Consulate in Chengdu, ratcheting up tensions between the economic superpowers. The US made a similar order on Wednesday, reviving fears of a tit-for-tat economic conflict. Investors also weighed earnings misses from Intel and American Express. Oil gained as reopenings abroad boosted…

US stocks drop after China escalates tensions with consulate order

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  • US stocks slipped on Friday after China ordered the closure of the US Consulate in Chengdu, ratcheting up tensions between the economic superpowers.
  • The US made a similar order on Wednesday, reviving fears of a tit-for-tat economic conflict.
  • Investors also weighed earnings misses from Intel and American Express.
  • Oil gained as reopenings abroad boosted hopes for a demand rebound. West Texas Intermediate crude climbed as much as 1.5%, to $41.67 per barrel.
  • Watch major indexes update live here.

US equities fell on Friday after China ordered the US to close its consulate in Chengdu, two days after the US called on China to close its own consulate in Houston.

Though the economic superpowers had enjoyed months of relative peace, the latest tensions have ratcheted up concerns about the US-China relationship souring in an already weakened global economy.

Here’s where US indexes stood shortly after the 9:30 a.m. ET market open on Friday:

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Investors also mulled gloomy earnings news at the start of the session. Intel sank after warning of delays to its next-generation chips and missing expectations for next-quarter figures. American Express shares slumped after the company reported quarterly revenue that fell below estimates.

Major tech stocks turned lower as well, further cutting into the Nasdaq composite’s lead over its peers. Amazon, Microsoft, and Apple all tumbled in early trading.

Oil traded higher as reopenings abroad prop up demand. West Texas Intermediate crude gained as much as 1.5%, to $41.67 per barrel. Brent crude, the international standard, climbed 1.4%, to $43.90 per barrel, at intraday highs.

Read more: Bernstein says buy these 13 dividend-rich stocks built to capitalize on a trend not seen in 65 years

Economic data detailing the US’s recovery has fallen short of hopes in recent weeks. Jobless claims for the week that ended on Saturday totaled 1.42 million, the Labor Department announced Thursday. The reading marked the first increase in claims in 15 weeks and landed above the consensus economist estimate of 1.3 million.

The last trading session of the week followed a hefty decline on Thursday. The Dow tumbled more than 350 points as investors first digested the uptick in unemployment claims and the continued spread of the coronavirus in the US. Wall Street has also closely watched Congress for signs of whether it will pass another stimulus bill.

While both parties have agreed on key facets, including a second round of stimulus checks and nixing a payroll-tax cut, legislators are mired in negotiations. Several financial-sector leaders have urged Congress to fast-track the legislation, saying the expiration of expanded unemployment benefits at the end of this month could give way to a wave of defaults.

Now read more markets coverage from Markets Insider and Business Insider:

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Gold prices reach highest level since 2011 and near record as investors flood safe havens

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