Stocks fall as Trump’s legal troubles, trade war put markets on edge

Traders work on the floor of the NYSE in New York

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Traders work on the floor of the NYSE in New York
source
Thomson Reuters

All three major US indices slumped Thursday, one day after the S&P 500 set a record for its longest bull run in history, as Trump’s legal woes and escalating trade tensions continued to loom over Wall Street. The dollar jumped, and Treasury yields fell.

Here’s the scoreboard:

Dow Jones industrial average: 25,648.92 −84.68 (-0.33%)

S&P 500: 2,855.27 −6.55 (-0.23%)

Nasdaq Composite: 7,878.46 −10.64 (-0.13%)

  1. The Trump administration enacted tariffs on an additional $16 billion worth of Chinese goods, prompting an in-kind response from Beijing. The actions came as the countries entered their second day of mid-level trade talks, where little progress was expected.
  2. Central bankers descended on Jackson Hole, Wyoming for a two-day symposium. The annual meeting comes a day after the Federal Reserve signaled in meeting minutes it would raise rates “soon” and will be followed by a closely-watched speech from Fed Chair Jerome Powell. Here’s a look at what to watch for.
  3. Earnings season rolls on. Alibaba‘s revenue jump of 61% year-over-year after a boost in online spending.

And a look at the upcoming economic calendar:

  • Core durable goods numbers are out in the US.
  • Fed Chairman Jerome Powell speaks in Jackson Hole.