By Yasin Ebrahim
Investing.com – Dow had a positive week after cutting losses to end Friday as investors weighed on growing U.S.-China tensions and ongoing efforts to lift damaging economic restrictions at the national level.
The flat closed, after reducing its intraday losses to post its best weekly victory since April 9. The 0.24% added, while the increase of 0.43%
Trade tensions between the U.S. and China have exploded as the Trump administration voiced concerns over China’s plan to impose a new security law in Hong Kong that threatens the city’s autonomy.
“The United States urges Beijing to reconsider its disastrous proposal, to comply with its international obligations and to respect Hong Kong’s high degree of autonomy, democratic institutions and civil liberties,” the secretary said on Friday. ‘State Mike Pompeo.
Pompeo’s statement echoes that of President Donald Trump, who said a day earlier that the United States “will very strongly approach China’s proposed security plans.”
The rebuke from Beijing’s plans for Hong Kong comes as Trump’s continued criticism of China’s handling of the coronavirus pandemic is cause for great concern that the two economic superpowers may resume their trade war.
Energy stocks led the way down as oil prices fell due to new concerns over crude demand after Chinese authorities abandoned the country’s 6% to 6.5% economic growth target % following the Covid-19 epidemic.
Halliburton (NYSE :), Devon Energy (NYSE ? and Baker hughes (NYSE ? was among the biggest declines in energy.
On the earnings side, Deere (NYSE ? fell 1.5% after second-quarter financial results were better than expected and helped counter bearish forecasts. The company warned that annual performance would be affected by the pandemic.
Foot Locker (NYSE ? announced a larger than expected first quarter loss of 25 cents, with comparable store sales down 42.8%, causing its shares to fall 8.7%.
Nvidia (NASDAQ ? increased 2.8% after releasing forecast results and forecasts, thanks to solid growth in its data center activity.
Somewhere else, Roku (NASDAQ ? fell 5.38% after Stephens downgraded the weighted security due to overweight fears, stocks have little fundamental support to move significantly higher than current levels.
Ongoing efforts to reopen the economy have been supported by Dr. Anthony Fauci, who, in an interview with CNBC, said that the time had come to “start seriously considering reopening the country to try to return to a certain degree of normality ”. “
As the economy reopens, some have warned that there may be a risk of a second wave of infections. But the United States will not lock out if the pandemic takes hold a second time, Trump said on Thursday.
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