US stocks fall, investors are frightened by the president

U.S. stocks fell the most in two weeks after a Trump administration official signaled a trade deal with China wasn’t close, rattling investors already on edge over signs a slowdown in the global economy is spreading and the American government remains on track for a shutdown.

The S&P 500 declined for a second day as the post-Christmas rally that added 16 percent showed signs of stalling. Larry Kudlow sparked the latest retreat after suggesting trade talks have a long way to go before next month’s deadline. Stocks opened lower and fell in Europe after officials there downgraded economic estimates for the region.

Crude slumped below $54 a barrel in New York and the 10-year Treasury rate slipped to 2.66 percent. The pound reversed losses after the Bank of England left rates unchanged and cut its growth forecast for the U.K. economy. Earlier in Japan, shares fell amid a raft of corporate earnings.

The S&P 500 fell 1.1 percent at 11:16 a.m. in New York. The Nasdaq 100 slid 1.3 percent. The Stoxx Europe 600 Index fell 1.1 percent, the first retreat in more than a week. The MSCI World Index of developed countries decreased 0.3 percent, the largest dip in more than a week. The MSCI Asia Pacific Index fell 0.2 percent.

U.S. Stocks Slide as Trade, Growth Concerns Mount, Bloomberg, Feb 07