Wall Street tumbles over 1% by the close

US stock indices closed the third session of the week sharply lower amid renewed concerns about the American position towards Chinese investments on local tech ventures.  

At first, the sentiment was positive after President Donald Trump announced the use of the Committee on Foreign Investment in the United States (CFIUS) to deal with potential threats of Chinese acquisitions of US tech, instead of putting up specific limitations on Chinese companies. 

The move was priced as a leaner approach compared to previous plans to ban companies with at least 25% Chinese ownership from buying up US tech companies, however Wall Street moved quickly to reverse sharply lower amid worries about intensifying confrontation between the two major economies. 

White House economic counselor Larry Cudlow stated recently that President Donald Trump won't back down on his trade decisions with China, adding that US economy keeps improving while China's economy is suffering because of the trade tariffs.

Striking a more conciliatory tone, US Treasury Secretary Steve Mnuchin said the US doesn't aim to impose restrictions on Chinese investments, noting that recent investment reforms aim to control the overall investment environment with the help of Congress regulations without targeting specific countries. 

Mixed US Data 

Earlier US data showed durable goods orders fell 0.6% in May, adding to a 1.6% decline in April, and beating forecasts of a 0.9% drop, while core orders fell 0.3%, compared to a 1.9% rise in April, and missing forecasts of a 0.5% increase. 

US goods trade deficit shrank to $64.8 billion in May from $67.3 billion, as analysts expected a $68.9 billion decline, while wholesale inventories rose 0.5%, up from 0.1% in April, while analysts expected a 0.2% increase. 

US pending home sales fell 0.5% in May, compared to a 1.3% drop in April, while analysts expected a 0.4% increase. 

Indices, Commodities 

Dow Jones slid 0.86%, or 165.52 points to 24,117.59, while Standard and Poor's 500 shed 0.86%, or 23.43 points to 2,699.63. NASDAQ Composite slumped 1.54%, or 116.54 points to 7,445.08. 

Gold futures due on August 15 fell 0.52% to $1,253.40 an ounce from the opening of $1,259.90, marking December 13 lows, while the dollar index climbed 0.45% to 95.35 from the opening of 94.68. 

US crude futures due on August 15 surged 2.65% to $72.40 a barrel from the opening of $70.53, marking November 27, 2014 highs, while Brent futures due on August 15 added 1.24% to $77.26 a barrel from the opening of $76.31, hitting May 31 highs, following the EIA report that showed a sharp decline in US inventories.