U.S. Stocks Fall as Foreign-Investment Deal Heightens Trade Tensions

U.S. stocks declined Thursday as a deal to toughen foreign-investment reviews stoked trade tensions and a round of lukewarm corporate-earnings reports weighed on sentiment. The proposed policy changes, announced Thursday by Senate Majority Whip John Cornyn of Texas, would mark the first major shift in a decade to laws used to vet foreign investment. The deal strengthens the Committee on Foreign Investment in the U.S. and the export control system, ostensibly to hinder foreign investment from countries such as China that could threaten national security.

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