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Wall Street edges lower on global worries despite falling yields

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The Dow and S&P 500 ended slightly lower as investors, worried about global growth prospects, fled from materials and industrials stocks but falling bond yields kept declines in order inside the three major indexes.

The International Monetary Fund cut global economic growth forecasts for 2018 and 2019 as well as 2019 US and China estimates, saying both the countries would experience the brunt of the trade war the coming year.

Meanwhile, US President Donald Trump repeated a threat to impose tariffs on $267 billion property value additional Chinese imports if Beijing retaliates for the recent levies along with other measures the United States introduced during the countries’ escalating trade war.

The materials index ended down 3.4%, its biggest one-day percentage drop since February 8. Chemical company PPG Industries was its biggest loser, falling 10% after warning that its current-quarter profit might be hit by higher raw material costs and softer demand in China.

“If industrials and materials are weighed on thanks to concerns about global activity, it’s planning to cast a pall across the market most importantly since S&P 500 companies generate about half of these business from overseas markets,” said Mark Luschini, chief investment strategist at Janney Montgomery Scott in Philadelphia.

The Dow Jones Industrial Average fell 56.21 points, or 0.21%, to 26 430.57, the S&P 500 lost 4.09 points, or 0.14%, to 2 880.34 additionally, the Nasdaq Composite added 2.07 points, or 0.03%, to 7 738.02.

But the chief indexes gained some support from falling US Treasury 10-year yields right after a spike a while back had put pressure on equities.

“It’s nearly as in case the 10-year looked from the mirror and scared itself. It’s decrease, so stocks have already been given something of a breather,” said Kristina Hooper, chief global market strategist at Invesco in New York.

Along with chemicals companies, paper packaging stocks WestRock and Packaging Corp of America both fell 8%, after BMO flagged risking potential rising industry supply.

The trade-sensitive industrials sector lost 1.5% with assist of airline stocks, which fell 3%.

American Airlines was its biggest percentage decliner by using a 6.5% drop after it said fuel prices were higher than expected in the third quarter, triggering concerns that rising fares weren’t enough to offset energy costs.

The energy index was the S&P’s biggest gainer, which has a 1% advance as oil prices rose on growing evidence falling Iranian crude exports in addition to a partial Ocean production shutdown as a result of Hurricane Michael.

Declining issues outnumbered advancing ones for the NYSE by way of a 1.13-to-1 ratio; on Nasdaq a 60 minute.51-to-1 ratio favored decliners.

The S&P 500 posted 16 new 52-week highs and 27 new lows; the Nasdaq Composite recorded 22 new highs and 118 new lows.

Volume upon us exchanges was 7.26 billion shares, depending on the 7.27 billion average during the last 20 trading days.

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