NEW YORK: Wall Street stocks fell decisively early Tuesday as worries about US-China trade tensions offset strong results from American banking giants.
China imposed sanctions on five American subsidiaries of South Korean shipbuilder Hanwha Ocean, accusing them of supporting a US government investigation into the shipping industry.
Washington has also been unhappy with moves by Beijing to tighten restrictions on rare earth exports.
About 30 minutes into trading, the Dow Jones Industrial Average was down 0.8 percent at 45,703.29.
Wall St advances as Trump cools China rhetoric
The broad-based S&P 500 dropped 1.0 percent to 6,589.76, while the tech-rich Nasdaq Composite Index fell 1.6 percent to 23,343.40.
The “concern for markets is how elongated does this trade war get as the rhetoric continues to escalate,” said Art Hogan of B. Riley Wealth Management.
“It appears as though both sides are increasing the rhetoric today.”
Markets have been on edge in recent days after Trump threatened “massive” tariffs on China last Friday before softening his rhetoric over the weekend, clearing the way for Monday’s rally.
JPMorgan Chase and Goldman Sachs both reported higher third-quarter profits that topped estimates. But JPMorgan shares fell 3.8 percent while Goldman dropped 4.6 percent.
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