Stocks – Wall Street Slumps Again on U.S.-China Tensions

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© Reuters. © Reuters. – Stocks fell for a second-straight day as worries about the U.S.-China trade talks, set to begin this week, proved strong enough to stall a recovery bid.

The finished at its low on the day, down 1.56%. The , which had fallen as many as 338 points early in the day, finished down 1.2% or 314 points. The fell 1.67%.

Chip and biotech stocks were among the hardest-hit group.

The decline left the S&P and more than 4% off from their summer peaks. The Nasdaq is off nearly 6%.

China was the big weight on the market, starting with last night’s announcement that the Trump Administration won’t let eight Chinese companies and a number of police departments buy technology products that can be used in surveillance.

Tuesday afternoon, the U.S. said it will impose visa bans on Chinese communist party officials linked to abuse in China’s Xinjiang province, where some million ethnic Uighurs have been put in detention camps.

The China news offset a positive reaction to Federal Reserve Chairman Jerome Powell’s announcement the central bank will be buying securities to provide enough liquidity in the banking system.

Oil and gold prices were lower. Interest rates moved up.

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