Major indexes closed in the red on Tuesday after President Donald Trump accused China as he spoke to the United Nations General Assembly. Wall Street was also affected negatively due to a sharp fall in September’s consumer confidence and on chances of the House of Representatives officially carrying out impeachment proceedings against Trump.
The Dow Jones Industrial Average declined 0.5% to close at 26,807.77 on Sep 24. The broader S&P 500 and Nasdaq Composite took the road south as well, shedding 0.8% and 1.5% respectively. The former closed at 2,966.60 and the latter finished the day at 7,993.63. The fear-gauge CBOE Volatility Index (VIX) rose 14.4% to close at 17.05 on Tuesday. Finally, decliners outnumbered advancers on the NYSE by a 1.31-to-1 ratio.
Trump Accuses Beijing on Trade and Other Issues
On Sep 24, U.S. stocks had started the day on a higher note after following Treasury Secretary Steven Mnuchin’s comments about U.S.-China trade talks resuming in two weeks in Washington. But markets turned red after Trump commented critically on China.
Addressing the United Nations General Assembly on Tuesday, Trump said he wouldn’t agree to a bad trade deal with the Asian Country. Trump said that the United States wanted to stop the "grave economic injustice" of unfair trading practices, singling out China in his remarks.
Trump highlighted various issues with the Asian country such as currency manipulation, forced technology transfers, product dumping and intellectual property thefts. He also criticized China’s economic model that is dependent on huge market barriers and high state subsidies.You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Impeachment Inquiry Likely Against Trump
U.S. House Speaker Nancy Pelosi announced that the House would go ahead with official impeachment proceedings following reports that Trump withheld aid to Ukraine as he pressurized Ukrainian President Volodymyr Zelensky to investigate Democratic presidential candidate Joe Biden and his son Hunter Biden.
Trump admitted that he spoke about Biden over his call and he tweeted he would release a transcript of the conversation. He denies pressurizing Zelensky. However, conflicting reports emerge of Trump pressurizing Ukranian officials to generate information that could threaten Biden, whose son Hunter had business dealings in the European country.
In economic news, U.S. Conference Board’s consumer confidence index decreased in September. The index stands at 125.1, much lower than 134.2 in August. Rising tensions with China on the trade front was a key factor affecting confidence last month.
In fact, September’s figure was the biggest drop in nine months. Consumers were less optimistic in their assessment of current market conditions and also had weaker short-term outlook.
Stocks That Made Headlines
BP Signs $9.61B LNG Supply Deal With South Korea's KOGAS
BP plc (BP - Free Report) recently struck a 15-year liquefied natural gas ("LNG") deal with South Korea’s state-run natural gas company Korea Gas Corporation (“KOGAS”). (Read more)
Kinder Morgan's Gulf Coast Express Pipeline Comes Online
Kinder Morgan, Inc.’s (KMI - Free Report) Gulf Coast Express (“GCX”) Pipeline Project is coming online today, ahead of schedule. (Read more)
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