US stocks trade lower amid trade tensions

New York: US stocks traded on a downbeat note on Monday as investors were concerned about intensifying trade tensions between the US and its major trade partners.

The Dow Jones Industrial Average sank 426.83 points, or 1.74 per cent, to 24,154.06. The S&P 500 dropped 49.01 points, or 1.78 per cent, to 2,705.87. The Nasdaq Composite Index was down 189.11 points, or 2.46 per cent to 7,503.70, Xinhua reported.

The Dow’s triple-digit losses were mainly led by the decline of Intel and Boeing. Shares of Intel and Boeing decreased about 4 per cent and 3 per cent, respectively, around midday.

Tech sector declined more than 2 per cent, weighing on the S&P 500. The Nasdaq also fell, with Micron Technology and Netflix among the worst performers. Shares of Micron and Netflix slid about 7.5 per cent and 6.3 per cent, respectively.

Investors grew increasingly concerned that the global economy could take a hit from the tensions between the world’s largest economy and its key partners, experts said.

On the economic front, the Chicago Fed National Activity Index (CFNAI) was negative 0.15 in May, down from positive 0.42 in April, indicating slower economic growth in May, according to the Federal Reserve Bank of Chicago Monday.

The CFNAI is a monthly index designed to gauge overall economic activity and related inflationary pressure. A zero value CFNAI indicates the national economy expanding at its average historical trend rate of growth, negative values indicate below average growth, and positive values above average growth.