Here Are 3 Hot Things to Know About Stocks Right Now
- The Dow Jones Industrial Average finished down Tuesday following reports the Trump Administration is putting visa restrictions on Chinese officials over abuses of Muslim minorities in the Xinjiang region
Wall Street Overview
Stocks finished lower Tuesday following late session reports the Trump Administration was putting visa restrictions on Chinese officials over abuses of Muslim minorities in the Xinjiang region just as the world's two largest economies prepare to hold trade talks later this week.
The Dow Jones Industrial Average ended down 314 points, or 1.19%, to 26,164 -- at its low for the day the blue-chip index was down 338 points. The S&P 500 dropped 1.56% and the Nasdaq, which had its worst day since August 23, fell 1.7%.
The State Department says the visa restrictions are aimed at officials "who are believed to be responsible for, or complicit in, the detention and abuse of Uighurs, Kazakhs, or other members of Muslim minority groups."
Secretary of State Mike Pompeo called upon China to "end its campaign of repression in Xinjiang, release all those arbitrarily detained, and cease efforts to coerce members of Chinese Muslim minority groups residing abroad to return to China to face an uncertain fate."
The move follows the Commerce Department's blacklist, unveiled late Monday, targeting China-based tech companies operating in the artificial intelligence space that were deemed to have been "implicated in human rights violations and abuses in the implementation of China's campaign of repression, mass arbitrary detention, and high-technology surveillance against" the minority groups.
Stocks had started to pare earlier losses after Federal Reserve Chairman Jerome Powell said during a speech in Denver that that he doesn't see why the 10-year-old U.S. economic expansion must give way to a recession any time soon.
"As we indicated in our March statement on balance sheet normalization, at some point, we will begin increasing our securities holdings to maintain an appropriate level of reserves," Powell said. "That time is upon us now."
However, the Dow began falling again on word of the visa restrictions. In addition, Bloomberg reported the White House was looking at ways to limit investment in Chinese firms by government pension funds.
The trade war between the U.S. and China could mean the loss of around $700 billion for the global economy by 2020, said Kristalina Georgieva, the new chief of the International Monetary Fund, adding that "everyone loses in a trade war."