U.S. Stocks Slump; Gold Tops $1,800 an Ounce: Markets Wrap

(Bloomberg) -- U.S. equities slumped amid tensions between Washington and Beijing and an uncertain outlook for economic recovery. Tech shares outpeformed.Most stocks fell on the S&P 500 Index while gains for Apple Inc. and Amazon.com Inc. pushed the Nasdaq Composite slightly higher. HSBC Holdings Plc slumped after a report that some of U.S. President Donald Trump’s advisers proposed a move to destabilize Hong Kong’s currency peg as a way of punishing China. Gold topped $1,800 an ounce, while Treasury yields climbed and the dollar slumped. Banks led European stocks lower.With much of the world stuck at home, investors have been bidding up tech shares largely insulated from the coronavirus lockdowns. Analysts are debating what comes next for the U.S. economy as states allow businesses to re-open, but the hope among many traders is that the infections sweeping through parts of the nation will prove manageable.“With the S&P getting close to the top end of its range, it looks like people are going with the ‘safe’ route -- they’re buying tech, gold and Treasuries,” said Matt Maley, chief market strategist at Miller Tabak + Co. “I never thought we’d be saying that the tech group was a safety trade, but that’s the way investors are looking at it right now.”Many Americans Plan to Spend Less Than Before the Virus StruckTensions between the U.S. and China have been growing after Beijing asserted broad new powers to rein in opposition in Hong Kong, pouring cold water over hopes the world’s largest economies will patch up relations soured by a lingering trade spat.Stocks in Shanghai powered ahead for a seventh day. Investors have been drawn to China’s markets amid efforts by regulators to boost the attractiveness of stocks and hopes for an economic recovery.European shares gave up gains early in the trading session after Hungarian Prime Minister Viktor Orban said regional leaders will probably fail to agree on a massive spending plan aimed at reviving their economies. Negotiations at a summit next week will be “very tough” and will likely need to continue throughout the summer, he said.Here are some key events coming up:All eyes will be on the U.S. weekly jobless claims report on Thursday.Singapore holds its general election on Friday.These are the main moves in markets:StocksThe S&P 500 Index fell 0.2% as of 11:23 a.m. New York time.The Stoxx Europe 600 Index declined 0.9%.The MSCI Asia Pacific Index rose 0.4%.CurrenciesThe Bloomberg Dollar Spot Index dipped 0.2%.The euro advanced 0.6% to $1.1337.The Japanese yen was little changed at 107.49 per dollar.The British pound rose 0.3% to $1.2585.BondsThe yield on 10-year Treasuries rose two basis point to 0.66%.Germany’s 10-year yield declined one basis point to -0.44%.Britain’s 10-year yield was little changed at 0.18%.CommoditiesWest Texas Intermediate crude fell 0.2% to $40.51 a barrel.Gold strengthened 1.1% to $1,813.93 an ounce.For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.

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