U.S. stocks mixed as trade tensions weigh on investors
NEW YORK -- Global industrial stocks closed in the red on Monday, adding to a global sell-off sparked by heightened trade tensions between the U.S. and China.
Machine maker Caterpillar and aircraft manufacturer Boeing shed 0.8 percent, while semiconductor makers Broadcomm and Qualcomm fell 2 percent and 1 percent respectively.
The Dow Jones industrial average closed down 100 points, or 0.4 percent, at 24,987, while the S&P 500 slid 0.2 percent.
Tariffs imposed by the world's two biggest economies are set to take effect on July 6, ratcheting up a trade dispute that has been simmering for months. President Donald Trump has announced a 25 percent tariff on up to $50 billion of Chinese products. China is retaliating by raising import duties on $34 billion worth of American goods, including soybeans, electric cars and whiskey.
The heightened tensions are creating increased uncertainty for U.S. businesses that operate internationally, and there are fears that rising prices and supply chain disruption will in turn hurt consumer confidence.
"Individual US sectors ranging from agriculture to aerospace are vulnerable to retaliation by China. Thus the growth and inflation impact on the US economy will depend in large part on China's response, as well as the impact trade tensions have on global growth," Madhavi Bokil, senior credit officer at Moody's, said in a note on Friday.
With investors worried about a trade war, bonds rose. The yield on the 10-year Treasury fell to 2.91 percent.