Stocks slump as US-China trade tensions escalate yet again

AP/Saul Loeb

Stocks fell on Friday as trade tensions resumed between China and the US after President Trump suggested he could cancel upcoming negotiations in September.
While speaking to the press at the White House, Trump told reporters that he wasn’t ready to make a deal with China.
The president also said the US would officially sever ties with Huawei, a Chinese telecommunications company at the center of the trade war.
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Stocks returned to a downward spiral on Friday after President Trump floated the idea of canceling upcoming trade talks with China in September, bringing into question whether the world’s two largest economies can avoid escalating their trade war.

While speaking to reporters on the South Lawn of the White House, Trump was asked whether the planned talks with China would be cancelled, to which Trump replied: "Maybe. We’ll see what happens." The comments come a few weeks before a new round of tariffs on $300 billion worth of Chinese exports are scheduled to take effect on September 1.

Trump also said the US would sever ties with the controversial Chinese telecommunications giant Huawei. But, if a trade deal was achieved, Trump suggested the ban could be lifted. The company was temporarily banned from doing business with the US earlier this summer.

Here’s a look at the major indexes as of the 4 p.m. close on Friday:

The S&P 500 slid 0.66%, to 2,918.76.
The Dow Jones Industrial Average fell 0.34%, to 26,287.44.
The Nasdaq Composite dropped 1%, to 7,959.14.

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All three major US indexes are poised to close in positive territory for the week after days of wild swings brought on by trade comments from Trump and China, fears of a currency war, and loosening monetary policy around the world.

Shares of Nektar Therapeutics cratered 40% on Friday after the company disclosed a quality control problem with one of its key cancer treatments. Wall Street analysts moved swiftly to downgrade the stock as concern grew over the future success of the cancer therapy.

Shares of Uber plunged as much as 10% after the ride-hailing services lost more money in the second quarter than investors and analysts anticipated. Uber said it lost $5.2 billion during the period, but chief executive officer Dara Khosrowshahi assured investors and analysts that losses would drop in the coming years.

CannTrust, a major cannabis producer, fell as much as 8.8% after the company’s auditor withdrew results for its most recent quarterly and full-year filings. The Canada-based producer said last week it may have to restate its earnings for the two filings after regulators discovered unlicensed pot greenhouses in early July. The stock then saw a torrid rebound in the afternoon.

Within the S&P 500, these were the largest gainers:

Amgen: 5.9%
News Corp: 5.3%
Marketaxess Holdings: 2.8%

And the largest decliners:

DXC Technology: (-30.5%)
Nektar Therapeutics: (-29.3%)
Mattel Inc: (-15.8%)

Healthcare and utilities posted the only gains in the S&P 500 on Friday. Energy, technology, and consumer discretionary firms were the index’s biggest losers.

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