US Considers Blocking Investment in China

Here is a daily recap of the S&P 500 broken down by sector followed by sector heat map as US considers blocking investment in China. Stocks in heat map are based on the top 10 holdings of each sector ETF. Click on each picture to zoom in. Below is a summary of today’s action on Wall Street provided by CNBC:

US futures point to a lower open on Wall Street

U.S. stock index futures were slightly lower Friday morning.

The S&P 500 (SPY) lost -0.53% today. Sector decliners led advancers 10 to 1 as shown below in the sector graph. Technology (XLK) -1.34% and communication services (XLC) -1.12% led decliners down. Consumer discretionary (XLY), consumer staples (XLP), energy (XLE), healthcare (XLV), industrials (XLI), materials (XLB), real estate (XLRE) and utilities (XLU) each suffered minor losses of less than 1%. Financials (XLF) enjoyed a small gain of less than 1%.

The Dow Jones index shaved off -70 points (-0.26%) to close at 26,820. The Nasdaq subtracted -91 points (-1.13%) to settle at 7,939.

US Considers Blocking Investment in China

Major averages finished in negative territory on Friday as the Trump administration considers blocking all US investment in China.

Trump administration officials are discussing ways to curb U.S. financial exposure in China, including a block of all American investment in the country, a person familiar with the talks told CNBC. Though the person cautioned that the discussion was still in early stages, such an action could send shockwaves throughout financial markets and involve the billions of dollars in investments tied to major indexes.

Bloomberg News, which first reported that the Trump administration was considering limiting U.S. investments into China, added that among available options is delisting Chinese companies from U.S. stock exchanges and limiting Americans’ exposure to the Chinese market through government pension funds.

Key Takeaways…

I took the following CNBC screenshots today regarding can they actually do it and driving the action:

Notable S&P 500 Movers…

Below I’ve highlighted some notable S&P movers (both winners & losers).

Credit: Sector Graph provided by Sector SPDR app. Sector breakdown provided by Charles Schwab. Sector heat map provided by finviz. Information Credit: News Headlines and quotes were taken from CNBC in the writing of this post.

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9/27/19

S&P 500 Sector Graph

US Considers Blocking Investment in China

S&P 500 (SPY)

US Considers Blocking Investment in China

Communication Services (XLC)

US Considers Blocking Investment in China

Consumer Discretionary (XLY)

US Considers Blocking Investment in China

Consumer Staples (XLP)

US Considers Blocking Investment in China

Energy (XLE)

US Considers Blocking Investment in China

Financials (XLF)

US Considers Blocking Investment in China

Real Estate (XLRE)

US Considers Blocking Investment in China

Healthcare (XLV)

Industrials (XLI)

Materials (XLB)

Technology (XLK)

Utilities (XLU)

S&P 500 Sector Heat Map

 

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