- Stocks traded lower on Friday after Bloomberg reported that the White House is mulling restrictions to US investment in China.
- The White House is reportedly considering multiple options, including delisting Chinese companies from US stock exchanges and restricting Americans’ vulnerability to Chinese firms through pension funds.
- Data released on Friday from the University of Michigan’s consumer sentiment surveyed showed US consumers became more concerned about the impact of tariffs and trade policy on the economy during September.
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Stocks fell on Friday as a potential restriction on US investment in China threatened tense trade negotiations with China.
Bloomberg reported that the White House is considering delisting Chinese companies from US stock exchanges and reducing Americans’ vulnerability to the Chinese market through pension funds. Trump administration officials are discussing the possibility of imposing limits on Chinese companies included in indexes managed by US firms.
The report comes as the US and China are scheduled to resume high-level trade negotiations on October 10. Investors have been paying close attentions to developments in the talks for any sign of an upcoming deal.
The University of Michigan’s consumer sentiment survey for September showed consumers are becoming increasingly concerned about the negative impact of tariffs on the US economy.
Here’s a look at the major indexes as of the 4 p.m. close on Friday:
- The S&P 500 fell 0.53%, to 2,961.79.
- The Dow Jones Industrial Average declined 0.26%, to 26,820.25.
- The Nasdaq Composite slid 1.13%, to 7,939.63.
Shares of Micron slid as much as 10.8% after the chipmaker forecasted lower profits and reported close to a $US7 billion drop in yearly revenue. The company said the US-China trade war, rising inventory, and muted demand will hurt profits in the first quarter of 2020.
Wells Fargo stock rallied 3.8% after the company announced Charles Scharf will become the banks new CEO after six months of uncertainty around the position. Scharf is currently the CEO of Bank of New York Mellon, and plans to start on October 21.
Within the S&P 500, these were the largest gainers:
And the largest decliners:
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