S&P 500, Nasdaq dip amid caution about potential trade war
US equity indexes mixed: Nasdaq down ~0.7%, Dow up ~0.2%
Real estate leads all S&P gainers; Tech is largest decliner
US PCE comes as expected, year-over-year PCE rises vs September
US Q3 GDP up 2.8%, in line with forecasts
US weekly jobless claims fall
STOXX 600 down 0.2%
Dollar down ~0.5%; crude oil, gold, bitcoin up ~3.3%
US Treasury 10-year yield down at 4.269%
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S&P 500, NASDAQ DIP AMID CAUTION ABOUT POTENTIAL TRADE WAR
The S&P 500 and the Nasdaq are trading modestly lower, with investors cautious President-elect Donald Trump's tariff plans could spur a full-on trade war that could undermine global growth.
The Dow so far is holding its gains.
Trump late on Tuesday also chose trade lawyer Jamieson Greer, Robert Lighthizer's former chief of staff, as his new U.S. trade representative, tapping a key veteran of his first-term trade war against China. He is expected to execute a sweeping tariff agenda that could ruffle global trade.
"Unease over the extent to which protectionist policies might be deployed by the U.S. remains elevated after the president-elect tapped Robert Lighthizer's former chief of staff to lead trade negotiations. Jamieson Greer is an avowed China hawk," writes Karl Schamotta, chief market strategist, at Corpay in a research note.
China's state media has already warned Trump that his vow to slap additional tariffs on Chinese goods over fentanyl flows could push the world's top two economies into a mutually destructive tariff war.
Meanwhile, a slew of economic data released before the opening bell was solid overall, but had minimal impact on stocks.
Gross domestic product increased at an unrevised 2.8% annualized rate for the third quarter, according to the Bureau of Economic Analysis second estimate. U.S. jobless claims, on the other hand, also fell in the latest week.
The U.S. PCE index, the Federal Reserve's preferred inflation measure was steady at 0.2% last month, while the year-on-year level rose 2.3%, up from 2.1% in September.
Overall, the numbers suggest that the Fed is on track to cut interest rates at next month's policy meeting.
Equities overall remain on a positive trajectory, analysts say, with Wall Street's main indexes and the small-cap Russell index .RUT trading near record highs.
The benchmark S&P 500 is on track for its biggest one-month rise in a year and poised for its sixth month of gains out of seven, as markets price in the probability Trump's policies could benefit local businesses and the overall U.S. economy.
Here's the latest market snapshot:
(Gertrude Chavez-Dreyfuss)
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WEDNESDAY'S OTHER LIVE MARKETS POSTS:
ALL-OUT TRADE WAR COULD MEAN LESS SUPPORT FOR SAFE-HAVEN YEN - CLICK HERE
POST-ELECTION OUTLOOK BRIGHT FOR VOLATILE U.S. SMALL CAPS - CLICK HERE
TARIFF RISK "MATERIAL" FOR EUROPE'S BEVERAGE MAKERS - CLICK HERE
TRUMP VICTORY UNLEASHED 'ANIMAL SPIRITS' U.S. EQUITY INFLOWS - BARCLAYS - HERE
STOXX 600 SLIPS, FRANCE UNDERPERFORMS ON BUDGET - CLICK HERE
EUROPE BEFORE THE BELL: FUTURES MIXED AFTER FOMC MINUTES, TARIFF THREATS - CLICK HERE
TRUMP TARIFF THREATS REVERBERATE IN ASIA -CLICK HERE
US early market snapshot https://tmsnrt.rs/4eNSZMg
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