Stocks give up gains amid trade dispute with China.
U.S. stocks advanced on Wednesday but quickly gave up gains to finish lower, as investors continued to weigh the breakdown of trade relations between the United States and China.
The large-cap S&P 500 Index (NYSEARCA:SPY) declined 0.9% to close at 2,699.63, with nearly all the majority of sectors reporting losses. Energy once again emerged as the biggest gainers, with shares in the sector rising 1.3%.
Dow industrials (NYSEARCA:DIA) were up triple digits before slamming on the breaks midday. They settled down 165.52 points, or 0.7%, at 24,117.59.
The Nasdaq Composite Index (NYSEARCA:QQQ) fell 1.5% to 7,445.08.
A measure of 30-day volatility known as the CBOE VIX (NYSEARCA:VXX) spiked on Wednesday as trade risks rattled investor sentiment. The so-called “fear index” rose more than 12% to 17.85.
Energy markets continues to surge on Wednesday as supply constraints from key OPEC exporters kept oil prices elevated. U.S. West Texas Intermediate (WTI) reached fresh three-and-a-half year highs, climbing $1.77, or 2.5%, to $72.30 a barrel on the New York Mercantile Exchange. ICE Brent futures rose $1.04, or 1.4%, to $77.35 a barrel.
In economic data, U.S. durable goods orders declined less than expected last month. The Department of Commerce reported that orders for manufactured goods meant to last three years or more fell 0.6% in May following a 1% drop the month before. Excluding transportation equipment, durable goods orders declined 0.3%.
Washington’s goods trade deficit narrowed unexpectedly in May, a separate report from the Commerce Department showed. The May deficit stood at $64.85 billion, down from $67.34 billion.
The Final Word: Washington’s trade spat with China continues to preoccupy investor sentiment. This is unlikely to change anytime soon as the Trump administration plans to implement new tariff policies on Beijing.