U.S. stocks were off to a lower start Tuesday, with analysts blaming rising tensions between the U.S. and China as House Speaker Nancy Pelosi prepared to visit Taiwan.
What’s happening Stocks ended a seesaw session slightly lower on Monday, with the Dow falling less than 50 points, or 0.1%, while the S&P 500 lost 0.3% and the Nasdaq Composite ticked down 0.2%.
Pelosi would be the highest ranking elected U.S. official to visit the island in 25 years and comes as part of a swing taking the speaker to Singapore, Malaysia, South Korea and Japan for talks on a variety of topics, including trade, COVID-19, climate change and security. “This outcome won’t derail the rally . But this is a market that does not need additional headwinds, and escalation in tensions between the U.S. and China will only serve as an additional headwind on stocks—something that won’t reverse the rally but could pile on if the outlook turns less rosy,” he wrote.
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As Pelosi begins Asia tour, China warns against visiting TaiwanU.S. House of Representatives Speaker Nancy Pelosi kicked off a closely-watched Asia tour on Monday in Singapore as China warned that its military would never 'sit idly by' if she were to visit Taiwan, the self-ruled island claimed by Beijing.
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