Stocks – Dow Drops as Government Shutdown Threat Offsets Trade Optimism

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Investing.com – The Dow closed lower Tuesday as President Donald Trump’s threat to shut down the government if Congress doesn’t fund his proposed border wall offset optimism on trade.

The Dow Jones Industrial Average fell 0.22%. The S&P 500 fell 0.04%, while the Nasdaq Composite rose 0.16%.

“If we don’t get what we want, one way or the other, whether it’s through you, through military, through anything you want to call, I will shut down the government,” Trump said Tuesday in meeting with Democratic leaders Sen. Chuck Schumer and Rep. Nancy Pelosi where the media was present.

That wiped out Tuesday’s early gains, which had followed improved sentiment on trade amid reports China had agreed to cut its U.S. auto import tariff rate to 15% from 40%, but it remains unknown when the change would go into effect.

Still, auto stocks rose on the report as General Motors (NYSE:GM) and Fiat Chrysler (NYSE:FCAU) rose about 1%, while Ford (NYSE:F) closed up 0.2%.

Wall Street started the session on the front foot amid reports high-ranking U.S. and Chinese officials held a call to advance trade talks, raising hopes the two nations would be able to find a solution to their differences on trade during the 90-day ceasefire.

Read more at : https://www.investing.com/news/stock-market-news/stocks–dow-drops-as-government-shutdown-threat-offsets-trade-optimism-1718582

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