Share

Wall Street tumbles on Spain terror, Trump policy worries

New York - US stocks fell sharply on Thursday following a deadly attack in Spain and amid rising concerns President Donald Trump may have endangered his economic agenda after alienating business leaders.

Investors also were rattled by rumours White House economic advisor Gary Cohn, a former Goldman Sachs president, could resign. A White House source denied this, however.

The investment bank was among the biggest losers on the blue-chip Dow Jones Industrial Average, which had its largest drop in three months and turned negative for the month.

The Dow dropped 1.2% to finish at 21 750.73 and the broader S&P 500 gave up 1.5% to close at 2 430.01.

The tech-heavy Nasdaq suffered the biggest loss, sinking 1.9% to close at 6 221.91.

After opening lower, stock losses accelerated shortly after 11 am after an attacker in Barcelona slammed a van into crowds on a popular tourist street, killing at least 13 people and injuring 50, authorities said.

Prior to the attack, investors already were fretting over news Trump had dissolved two business councils amid an exodus of CEOs seeking to distance themselves from the US president's heavily-criticized response to a white supremacy rally over the weekend.

Trump's agenda of tax cuts and infrastructure spending now faces a bitterly divided Congress with which he has repeatedly butted heads.

Disbanding the CEO advisory boards, "created a lot of concerns for investors," said Adam Sarhan of 50 Park Investment.

"This is the first time since Trump took office there is a disconnect between him and the business community."

Sarhan said previous political shocks - such as Republican failure to repeal the previous administration's health care laws or the nuclear brinkmanship with North Korea - had not directly affected economic policy.

"This is the first time where we have a political event that directly impacts the economy. That is why stocks are selling off. It is not just noise."

Goldman Sachs fell 1.8% and Cisco Systems was the Dow's biggest loser, tumbling by four percent, after reporting disappointing earnings in its security business.

Apple fell 1.9%, dragging down the S&P and the Nasdaq, while Wal-Mart Stores lost 1.6% after reporting a steep decline in profits despite posting a 60% gain in internet sales and beating expectations on earnings per share.

SUBSCRIBE FOR FREE UPDATE: Get Fin24's top morning business news and opinions in your inbox.

Read Fin24's top stories trending on Twitter:

We live in a world where facts and fiction get blurred
Who we choose to trust can have a profound impact on our lives. Join thousands of devoted South Africans who look to News24 to bring them news they can trust every day. As we celebrate 25 years, become a News24 subscriber as we strive to keep you informed, inspired and empowered.
Join News24 today
heading
description
username
Show Comments ()
Rand - Dollar
18.98
-0.4%
Rand - Pound
23.97
-0.3%
Rand - Euro
20.51
-0.2%
Rand - Aus dollar
12.37
-0.1%
Rand - Yen
0.13
-0.5%
Platinum
904.37
+0.8%
Palladium
1,014.65
+1.3%
Gold
2,211.77
+0.8%
Silver
24.71
+0.3%
Brent Crude
86.09
-0.2%
Top 40
68,332
+1.0%
All Share
74,512
+0.8%
Resource 10
57,108
+2.6%
Industrial 25
104,079
+0.8%
Financial 15
16,481
-0.3%
All JSE data delayed by at least 15 minutes Iress logo
Company Snapshot
Editorial feedback and complaints

Contact the public editor with feedback for our journalists, complaints, queries or suggestions about articles on News24.

LEARN MORE
Government tenders

Find public sector tender opportunities in South Africa here.

Government tenders
This portal provides access to information on all tenders made by all public sector organisations in all spheres of government.
Browse tenders