Wall Street stocks slipped in early trading on Tuesday as trade tensions with China resurfaced, putting pressure on major indices. The S&P 500 fell 1 per cent, the Dow Jones Industrial Average slipped 383 points or 0.8 per cent, and the Nasdaq composite shed 1.5 per cent as of 9:57 a.m. Eastern time, AP reported.The decline adds to recent volatility, following Wall Street’s worst day since April last Friday and a rebound on Monday, which was the best day since May. Analysts said the swings reflected shifting sentiment over US-China trade relations.The latest downturn came after China’s Commerce Ministry barred Chinese companies from dealing with five subsidiaries of South Korean shipbuilder Hanwha Ocean, a move seen as countering President Donald Trump’s efforts to rebuild US shipbuilding. European markets were also lower, while Asian markets fell.The ongoing US-China trade conflict continues to weigh on investors, with both nations imposing new port fees on each other’s vessels that took effect on Tuesday. Experts say the dispute is particularly significant given the two countries’ positions as the world’s largest economies.So far, the US economy has avoided major fallout from shifting tariff policies, but analysts warn that a cycle of retaliatory tariffs could lead companies to pass higher costs to consumers. The ongoing US government shutdown has also paused regular economic updates on inflation, spending, and employment, leaving investors focused on corporate earnings for guidance.Among stocks, JPMorgan Chase slipped 3.8 per cent despite beating profit forecasts for its latest quarter, while Wells Fargo rose 3.5 per cent after exceeding analysts’ expectations. Health care giant Johnson & Johnson fell 1.8 per cent after announcing plans to spin off its orthopedics business into a standalone company.Treasury yields remained relatively stable, with the 10-year yield easing slightly to 4.04 per cent from 4.05 per cent on Friday. Bond markets were closed on Monday for a US holiday.
