Wall Street slides following US-China trade deal

A television screen on the floor of the New York Stock Exchange. (AP)

US stocks sank into the red in late morning trade on Friday as investors parsed scant details in a new US-China trade deal announced earlier in the day.

Chinese and US officials confirmed that Washington had canceled a $160 billion round of tariffs scheduled to take effect on Sunday, while China will increase imports from the US by unspecified amounts.

The decline erased some of Thursday’s rally, which was driven by media reports Washington and Beijing had at last reached a bargain to de-escalate their trade war after 20 months.

Shortly after 1630 GMT, the benchmark Dow Jones Industrial Average and broader S&P 500 were both down 0.3 percent at 28,044.17 and 3,158.97 respectively.

The tech-heavy Nasdaq was down less than a tenth of a percent at 8,712.85.

In a tweet, US President Donald Trump said the tariffs “will not be charged because of the fact that we made the deal.”

Trump said existing tariffs of 25 percent on $250 billion of Chinese imports will remain pending further negotiations on a second phase deal, along with 7.5 percent tariffs on another $120 billion of imports.

Among individual companies, Oracle fell 2.8 percent and Broadcom lost a steeper 4.8 percent after earnings reports cast doubt on future revenues.

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Last Update: Wednesday, 20 May 2020 KSA 09:54 - GMT 06:54
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