The VIX moved higher amid escalating trade tensions with China
The Dow suffered its second straight triple-digit loss today, after the Trump administration doled out more tariff threats against China, and Beijing vowed to retaliate. The blue-chip benchmark extended its losing streak to six days, its longest since March 2017, and is now trading below its year-to-date breakeven level. The trade tensions sent the S&P 500 and Nasdaq lower as well, while the VIX -- or Wall Street's "fear gauge" -- finished at its highest point in weeks.
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The Dow Jones Industrial Average (DJI - 24,700.21) shed 287.3 points, or 1.2%, for its sixth straight loss. Of the 30 blue chips, eight closed with gains. Verizon Communications (VZ) had the best day, adding 2.2% after an analyst upgrade, while Boeing (BA) paced the 21 losers with a 3.8% drop. Microsoft (MSFT) broke even.
The S&P 500 Index (SPX - 2,762.57) gave back 11.2 points, or 0.4%. The Nasdaq Composite (IXIC - 7,725.59) lost 21.4 points, or 0.3%.
The Cboe Volatility Index (VIX - 13.35) tacked on 1 point, or 8.5%, for its highest close since June 1.
5 Items on Our Radar Today
- At a German-French summit in Berlin today, German Chancellor Angela Merkel and French President Emmanuel Macron agreed on a preliminary budget plan for the eurozone. However, the pair still need to garner support from other eurozone governments. (Bloomberg)
- The United States is allegedly exiting the United Nations Human Rights Council. Under the Trump administration, the U.S. was unhappy with the council's treatment of Israel. Reports of the exit come as Washington faces scrutiny over the separation of children and immigrant parents at the Mexico border. (Reuters)
- A Senate vote on ZTE buried Acacia stock.
- SNAP stock saw its streak halted by bear note.
- Tension surrounds Micron stock ahead of earnings.
There are no earnings to report today.
Data courtesy of Trade-Alert
Oil, Gold Give Back Gains
Oil prices dipped today amid increased trade tensions between the U.S. and China. Investors are also keeping their eye on Friday's Organization of the Petroleum Exporting Countries (OPEC) meeting, where an increase in crude production is expected. July-dated crude futures shed 78 cents, or 1.2%, to settle at $65.07 per barrel.
Gold prices also fell today, bucking the usual demand for safe-haven assets that tends to accompany falling stock prices. The greenback gained ground, weighing on the dollar-denominated commodity. Gold futures for August delivery gave back $1.50, or 0.1%, to close at $1,278.60 an ounce, its lowest point since December.