S&P 500, Dow lose ground as trade talks hit snag
The S&P 500 and the Dow were down and the Nasdaq edged higher in light trading on Friday as investors reacted to the possibility that a new Canada-U.S. trade agreement could miss a deadline heading into the Labor Day weekend.
Capping a low-volume, late-summer week marked by tariff-related volatility, all three major U.S. indexes looked set to show net gains for the period. The indexes are also on track to be up for the month of August, with the Nasdaq posting its largest monthly gain since January.
Trade talks between Canada and the United States had yet to clear some remaining hurdles as negotiators struggled to meet a Friday deadline.
The CBOE Volatility index <.vix>, a gauge of investor anxiety, moved higher on this and other trade developments, including a report that U.S. President Donald Trump is prepared to impose tariffs on an additional $200 billion of Chinese imports as soon as next week.
"Normally when (trading) volume goes down if you have some major headlines the effect on the markets gets magnified," said Don Steinbrugge, managing partner at Agecroft Partners in Richmond, Virginia. "It can significantly increase volatility."
The Dow Jones Industrial Average <.dji> fell 73.76 points, or 0.28 percent, to 25,913.16, the S&P 500 <.spx> lost 6 points, or 0.21 percent, to 2,895.13 and the Nasdaq Composite <.ixic> added 7.20 points, or 0.09 percent, to 8,095.56.
Of the 11 major sectors in the S&P 500, eight were trading lower.
Shares of gun maker American Outdoor Brands
Chipotle Mexican Grill
Ford Motor Co
Declining issues outnumbered advancing ones on the NYSE by a 1.22-to-1 ratio; on Nasdaq, a 1.26-to-1 ratio favoured advancers.
The S&P 500 posted 27 new 52-week highs and 3 new lows; the Nasdaq Composite recorded 99 new highs and 24 new lows.
(This article has not been edited by Zeebiz editorial team and is auto-generated from an agency feed.)
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