Technology shares led the Wall Street into the red Tuesday as recessionary worries, fueled by tanking producer prices from China, depressed investor risk appetite.
A GAIN in industrials cushioned the blue-chip Dow’s slide, and the tech-heavy Nasdaq was on the monitor for its third straight decline.
“It looks like a step from growth to value is too early to say if it’s a transfer or a trade,” said Bucky Hellwig, senior VP at BB&T Wealth Management in Birmingham, Alabama.”
China manufacturer prices, or the prices factories get for the products they make, fell in September at their sharpest speed in three years as the nation grapples with its bruising trade battle with the U.S.
Hellwig believes, however, that weakness could grease the wheels in the Bejing-Washington trade talks.
Indeed, China is expected to purchase more agricultural products to place itself for a better trade deal, based on a report from the South China Morning Post.
The underwhelming data from China weighed on tariff-sensitive technology shares, which were down 1.1%
Amid signs of a worldwide economic slowdown, market participants count on the U.S. Federal Reserve and the European Central Bank to pare interest rates over the next two weeks, and Germany’s finance minister suggested the country was ready for a big stimulus package if its economy tips into recession.