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<\/p>\n[NEW YORK] Wall Street\u00a0stocks\u00a0ended lower while gold prices surged on Thursday as declining financial shares and simmering trade tensions between the United States and China dampened investor enthusiasm.<\/p>\n
All three major US stock indexes reversed earlier gains to end the session in negative territory while safe-haven investors continued to send gold to new highs. <\/p>\n
Disappointing results from Travelers and the disclosure by Zions Bancorp that it would take a US$50 million loss in the third quarter pulled the financial index down 2.75 per cent.<\/p>\n
\u201cIn the absence of data, the banks are going to be providing the sort of data substitute,\u201d said Chuck Carlson, chief executive officer at Horizon Investment Services in Hammond, Indiana. \u201cWe\u2019re seeing hefty declines in some of these banks and financials that are especially credit sensitive, so maybe credit quality is deteriorating.\u201d<\/p>\n
\u201cThe dollar\u2019s pretty weak today, and crypto\u2019s getting killed, too,\u201d Carlson added. \u201cIt\u2019s a risk-off day. Signs of a dampening labour market appear to be making the case for easing monetary policy. Federal Reserve Governor Christopher Waller said on Thursday that \u201cbased on all the data we have … I believe that (the Fed) should reduce the policy rate another 25 basis points\u201d at the conclusion of this month\u2019s monetary policy meeting on Oct 29. <\/p>\n
Investors were eying the latest developments in the escalating US-China trade dispute. Top US trade officials condemned China\u2019s expansion of export controls on rare earths, while Beijing accused Washington of stoking global panic over supply chain disruption.<\/p>\n
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Trade uncertainty is one driver helping to launch gold prices to all-time highs, according to Sam Stovall, chief investment strategist of CFRA Research in New York.<\/p>\n
\u201cBecause of the trade tensions, a lot of central banks, global central banks are buying gold and that is being helped by lower interest rates as well as the weakening US dollar,\u201d Stovall said. \u201cIt\u2019s not a reaction to worries about the global economy, but rather political uncertainty.\u201d <\/p>\n
The Dow Jones Industrial Average fell 301.07 points, or 0.65 per cent, to 45,952.24, the S&P 500 fell 41.98 points, or 0.63 per cent, to 6,629.08 and the Nasdaq Composite fell 107.54 points, or 0.47 per cent, to 22,562.54.<\/p>\n
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