NEW YORK, May 15 — Wall Street stocks fell in opening trading today following weak US retail sales data and US actions against Chinese telecoms giant Huawei that escalated tensions with Beijing.
About 20 minutes into trading, the Dow Jones Industrial Average stood at 23,519.54, down 0.5 per cent.
The broad-based S&P 500 dropped 0.6 per cent to 2,834.59, while the tech-rich Nasdaq Composite Index shed 0.9 per cent to 8,864.95.
US retail sales plunged by 16.4 per cent in April as the coronavirus pandemic forced businesses shut across the world’s largest economy, the Commerce Department said.
The drop was the largest recorded in the history of the survey and much worse than expected, adding to a pile of increasingly dismal reports that have shown spiking joblessness, falling industrial production, weak business investment and meagre consumer confidence.
Stocks rose strongly in April and the first week of May amid hopes for a speedy rebound from coronavirus shutdowns due in part to unprecedented fiscal spending from Washington. But equities have been under pressure this week on fears that the recovery will be slow and grinding and worries over a second wave of Covid-19.
Adding to the angst have been statements from the White House blaming China for the US outbreak of Covid-19 and raising fears of a revived trade war.
President Donald Trump’s administration said Friday it would restrict the ability of Huawei to develop semiconductors abroad with US technology. — AFP
