U.S. stocks traded lower Thursday, with the Dow Jones Industrial Average sinking more than 300 points, as investors focused on U.S.-China trade tensions, highlighting widespread worries over slower global economic growth.
What are major indexes doing?
The Dow Jones Industrial Average DJIA, -1.23% slid 331 points, or 1.3%, to 25,059, while the S&P 500 index SPX, -1.37% retreated 37 points, or 1.4%, to 2,694. The Nasdaq Composite Index COMP, -1.57% fell 115 points, or 1.6%, to 7,259.
What’s driving the market?
Trade war jitters resurfaced after National Economic Council Director Larry Kudlow said during an interview with Fox Business Network that there is still a long way to go before the U.S. will strike a trade deal with China. Previous talks covered “a tremendous amount of ground” but enforcement will be the key, he said.
CNBC also reported that a meeting between President Donald Trump and China’s Xi Jinping is not likely before a March 1 deadline, but the U.S. is likely to keep tariffs at 10% rather than raise them to 25% as scheduled.
A round of weak data from the European Union underscored concerns that slowing growth in China has impacted Europe, underscoring spreading concerns about a slowing global economy.
German industrial production unexpectedly fell by 0.4% in December from the month before, reinforcing concerns over the health of the eurozone’s largest economy. Meanwhile, the European Commission cut its growth forecast for the shared currency bloc, Thursday, predicting that the 19 member countries will collectively grow by just 1.3% this year, down from the 1.9% forecast in November.
Meanwhile, investors continue to digest corporate earnings, while looking ahead to large-cap names like Expedia Group Inc. EXPE, -0.67% which are set to release results after the market close.
Federal Reserve Chairman Jerome Powell, in a town hall appearance Wednesday night, said his goal was for the central bank to earn the public’s trust. The comments came as the Fed chief faced criticism for his dinner on Monday with President Trump, which some said gave the appearance of White House influence over policy as it came soon after the central bank unexpectedly shifted to a more dovish stance.
What data and Fed speakers are in focus?
The number of Americans applying for jobless benefits fell in the week ended Feb. 2 by 19,000 to 234,000, above economists expectations of 225,000 per a MarketWatch poll, but near historic lows.
At 3 p.m. Eastern, the Federal Reserve will release data on the growth of U.S. consumer credit.
At 7:30 p.m. ET, St. Louis Fed President James Bullard, a voting member of the central bank’s interest-rate setting committee, will give a speech at Saint Cloud State University.
Read: Fed shifts to Jim Bullard’s world after new interest-rate strategy
What are analysts saying?
“The overwhelming risk concern is slowing global economic growth,” Matthew Forester, chief investment officer of BNY Mellon’s Lockwood Advisors, told MarketWatch. “Recent data particularly from Germany, and Europe more broadly, are worrying investors,” he said.
“We’ve also seen central banks around the world begin to cut rates and lower their growth forecasts,” he added. “There’s concern that this will cause a slowdown in the U.S., though we haven’t seen evidence of that yet.”
What shares are in focus?
In deal news, SunTrust Banks Inc. STI, +8.51% and BB&T Corp. BB, -2.53% announced they will combine in an all-stock merger of equals valued at around $66 billion, creating the sixth-largest U.S. bank based on assets and deposits. SunTrust shares rallied 8.4% while BB&T shares advanced 2.5%.
Shares of Chipotle Mexican Grill Inc. CMG, +13.43% soared 13% after the restaurant chain reported, on Wednesday evening, adjusted quarterly earnings above expectations.
Shares of Twitter Inc. TWTR, -9.87% skidded 11% after the firm issued a downbeat outlook for the current quarter, while announcing it would stop reporting the monthly average user metric.
Spectrum Brands Holdings Inc. SPB, -15.92% slumped 15% after the parent of George Foreman and Remington brands reported a net loss for the quarter ended. Dec. 30
Shares of Cardinal Health Inc. CAH, +6.87% advanced 7.5% after pharmaceutical and medical device provider raised its full-year 2019 guidance.
T-Mobile US Inc. TMUS, +1.00% rose 0.9% after the firm reported better-than-expected fourth quarter profit, though services revenue missed forecasts.
Philip Morris International Inc. PM, +0.82% shares gained 0.7% after the company reported fourth-quarter earnings and revenue that beat expectations.
Shares of Hanesbrands Inc. HBI, +18.75% jumped 18% after the apparel maker reported fourth-quarter earnings and profit above Wall Street expectations.
How are other markets trading?
Japanese stocks ended the day weaker with the Nikkei 225 NIK, -0.59% closing the day 0.6% lower. Markets in Hong Kong and China were closed for the Lunar New Year holiday.
In Europe, stocks were under pressure with the Stoxx Europe 600 SXXP, -1.49% down more than 1%.
Crude oil CLH9, -2.91% prices slumped while the price of gold GCH9, -0.02% was generally flat. The U.S. dollar DXY, +0.11% was firmer compared with a basket of currencies of U.S. trading partners.
—William Watts contributed to this report
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