US stocks trade lower amid trade tensions

New York: US stocks traded on a downbeat note on Tuesday as investors grew concerned over the increasing trade tensions between Washington and its key trading partners.

The Dow Jones Industrial Average dropped 126.85 points, or 0.49 per cent, to 25,837.97. The S&P 500 was down 15.44 points, or 0.53 per cent, to 2,886.08, Xinhua news agency reported.

The Nasdaq Composite Index decreased 60.81 points, or 0.75 per cent, to 8,048.73.

The Dow declined with Nike and Verizon among the worst performers. Shares of both companies fell more than 2.5 per cent around midday. Nine of the 11 primary S&P 500 sectors traded lower, with telecom and materials lagging. Tech sector declined, dragging the tech-heavy Nasdaq.

Shares of Amazon gained about 1 per cent at midday trading. The US e-commerce giant has become the second US-company to reach $1 trillion in market cap on Tuesday after the stock rose nearly 2 per cent in morning trading.

Concerns over trade tensions between the US and its major trading partners lingered, weighing on the market, experts noted.

The US and Canada failed to meet the Friday deadline imposed by the US government to revamp the NAFTA trade agreement as major differences remained in bilateral talks.

It is unclear whether the US and Canada will work out their differences in the next few weeks.