US close: Markets in the red as Trump turns up China rhetoric again

US stocks finished Monday’s session in the red, as trade tensions between the US and China escalated, with the Trump administration set to implement a fresh round of punitive tariffs on a further $200bn worth of Chinese goods.

The Dow Jones Industrial Average ended the day down 0.35% at 26,062.12, the S&P 500 was off 0.56% at 2,888.80, and the Nasdaq 100 slid 1.47% to 7,434.73.

According to reports from the Wall Street Journal over the weekend, Beijing was considering declining the US administration's offer of negotiations later this month after Trump instructed aides to press ahead with tariffs of 10%.

Trump tweeted on Monday: "Tariffs have put the US in a very strong bargaining position, with Billions of Dollars, and Jobs, flowing into our Country - and yet cost increases have thus far been almost unnoticeable.

“If countries will not make fair deals with us, they will be Tariffed!,” he tapped out.

City Index market analyst Ken Odeluga said the ongoing spat could have a negative effect on the US tech sector, and thus on the Nasdaq 100, which has had a stellar year, adding 17.64% by 29 August.

“A key investor worry then, is that Washington’s dispute with China combined with increasing regulation could create bigger obstacles for the web, streaming, e-commerce and software giants that are dependent on global consumption and dominate Nasdaq 100,” Odeluga noted.

“Such worries came to a head again on Monday amid signs that the White House could impose the latest round of tariffs on China at almost any moment.”

On the data front, business conditions in the New York region deteriorated in September, according to a survey from the New York Fed.

The Empire State manufacturing index fell to 19.0 from 25.6 in August, missing expectations for a reading of 23.0.

According to the survey, 40% of respondents reported an improvement in conditions over the month, while 21% reported a worsening.

The new orders index was little changed at 16.5 and the shipments index fell 11 points to 14.3.

Employee numbers held steady at 13.3, while the prices paid index was also steady at 46.3.

In corporate news, shares of DowDuPont were up 0.35% after the company said that chief executive Edward Breen will assume the position of executive chairman of its speciality products divisions once it separates into three different units.

Elsewhere, Teva Pharmaceutical Industries reversed earlier losses to end the day ahead by 2.54%, after the US Food and Drug Administration approved its migraine treatment.

FedEx managed gains of 0.11%, while Oracle was down 0.14% after reporting their earnings shortly before the opening bell.

Dow Jones - Risers

Caterpillar Inc. (CAT) $146.23 0.91%
3M Co. (MMM) $209.53 0.79%
Procter & Gamble Co. (PG) $84.25 0.77%
Coca-Cola Co. (KO) $46.32 0.72%
Merck & Co. Inc. (MRK) $70.42 0.63%
Exxon Mobil Corp. (XOM) $83.41 0.59%
Dowdupont Inc. (DWDP) $68.84 0.38%
Johnson & Johnson (JNJ) $139.96 0.34%
JP Morgan Chase & Co. (JPM) $113.84 0.30%
Verizon Communications Inc. (VZ) $54.70 0.27%

Dow Jones - Fallers

Apple Inc. (AAPL) $217.88 -2.66%
McDonald's Corp. (MCD) $158.14 -1.68%
Visa Inc. (V) $146.18 -1.12%
Microsoft Corp. (MSFT) $112.14 -1.08%
Boeing Co. (BA) $355.98 -1.07%
Cisco Systems Inc. (CSCO) $47.11 -0.61%
Goldman Sachs Group Inc. (GS) $227.89 -0.59%
Unitedhealth Group Inc. (UNH) $263.87 -0.54%
American Express Co. (AXP) $109.20 -0.33%
Home Depot Inc. (HD) $208.40 -0.32%

S&P 500 - Risers

Frontier Communications Co. (FTR) $6.38 10.19%
Bed Bath & Beyond Inc. (BBBY) $19.15 5.98%
Mosaic Company (MOS) $31.99 3.90%
NiSource Inc. (NI) $25.73 3.79%
Kroger Co. (KR) $28.84 3.74%
Express Scripts Holding Co (ESRX) $95.23 3.71%
Signet Jewelers Ltd (SIG) $67.68 3.09%
McKesson Corp. (MCK) $131.77 2.50%
ONEOK Inc. (OKE) $67.98 2.38%
Range Resources Corp. (RRC) $16.05 2.10%

S&P 500 - Fallers

Teradata Corp. (TDC) $37.95 -4.77%
Ryder System Inc. (R) $75.15 -4.01%
Netflix Inc. (NFLX) $350.35 -3.90%
Keurig Dr Pepper Inc. (KDP) $23.53 -3.80%
CH Robinson Worldwide Inc (CHRW) $96.71 -3.38%
Urban Outfitters Inc. (URBN) $41.11 -3.34%
Microchip Technology Inc. (MCHP) $80.88 -3.25%
Amazon.Com Inc. (AMZN) $1,908.03 -3.16%
Macy's Inc. (M) $35.16 -3.06%
Autodesk Inc. (ADSK) $146.72 -3.06%

Nasdaq 100 - Risers

Express Scripts Holding Co (ESRX) $95.23 3.71%
American Airlines Group (AAL) $40.32 1.46%
Henry Schein Inc. (HSIC) $84.39 1.20%
Dollar Tree Inc (DLTR) $85.50 1.10%
Ulta Salon, Cosmetics & Fragrance Inc. (ULTA) $281.45 0.84%
Vodafone Group Plc ADS (VOD) $22.36 0.58%
Dish Network Corp. (DISH) $36.56 0.49%
Charter Communications Inc. (CHTR) $319.47 0.42%
PACCAR Inc. (PCAR) $70.63 0.41%
Western Digital Corp. (WDC) $57.18 0.39%

Nasdaq 100 - Fallers

JD.com, Inc. (JD) $25.73 -5.09%
Workday, Inc. (WDAY) $144.73 -4.20%
Netflix Inc. (NFLX) $350.35 -3.90%
Microchip Technology Inc. (MCHP) $80.88 -3.25%
Amazon.Com Inc. (AMZN) $1,908.03 -3.16%
Autodesk Inc. (ADSK) $146.72 -3.06%
Align Technology Inc. (ALGN) $378.37 -3.02%
Activision Blizzard Inc. (ATVI) $78.88 -2.94%
Apple Inc. (AAPL) $217.88 -2.66%
Synopsys Inc. (SNPS) $100.07 -2.58%