Wall Street’s major indexes have ended a shortened session lower as US-China discord over Hong Kong fuelled investor anxiety about trade talks and retail stocks dipped as in-store Black Friday sales appeared to draw smaller crowds.

China on Thursday threatened to retaliate against a US law backing pro-democracy protesters in Hong Kong with potential measures including barring drafters of the legislation from mainland China, Hong Kong and Macau, the editor of China’s state-backed Global Times tabloid said in a tweet. And on Friday a Reuters report cited two sources saying the US government may expand its power to stop more foreign shipments of products with US technology to China’s Huawei due to frustration that a blacklisting failed to end supplies to the world’s largest telecoms equipment-maker.

While the S&P closed above its session low, selling intensified in the last hour of trading after the report on Huawei. All three of Wall Street’s major indexes had registered record highs earlier in the week when hopes were higher for an imminent “phase one” US-China trade deal. The trade-sensitive Philadelphia Semiconductor index fell 1.1 per cent.

For the month, preliminary Refinitiv data showed that the S&P rose 3.4 per cent while the Dow gained 3.7 per cent and Nasdaq climbed 4.5 per cent. It was the the biggest monthly gain for all. The Dow Jones Industrial Average on Friday fell 112.59 points, or 0.4 per cent, to 28,051.41; the S&P 500 lost 12.65 points, or 0.40 per cent, to 3,140.98; and the Nasdaq Composite dropped 39.70 points, or 0.46 per cent, to 8,665.47.

Morning-Market-Note-Monday-2nd-December

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