Stocks fall as Pelosi's visit to Taiwan spurs risk-off wagers

Stocks fall as Pelosi's visit to Taiwan spurs risk-off wagers ...

Stock-index futures in the United States were lower on Tuesday as investors sought to reduce risk ahead of House Speaker Nanci Pelosis' scheduled visit to Taiwan, the first visit by a top US government official in more than 25 years, stoking fears about growing tensions between the United States and China.

Futures linked to the Dow Jones Industrial Average were 144 points lower, or 0.5 percent. S&P 500 futures fell by 0.7 percent, and Nasdaq 100 futures fell by 0.8%.

The price of government debt in the United States rose on Tuesday morning as investors waited for Pelosis' visit to Asia and looked ahead to Friday's employment report.

The yield on the benchmark 10-year Treasury note dropped to 2.553%, while the yield on the 30-year Treasury bond also decreased to 2.891%. Yields respond in opposite directions to prices.

After all the major averages finished their best month since 2020, stocks fell for the first regular trading day of August. The S&P 500 shed 0.28% to close at 4,118.63 while the Nasdaq Composite fell 0.18% to close at 12,368.98. The Dow Jones Industrial Average fell 46.73 points, or 0.14%, to close at 32,798.40.

Pelosi is scheduled to arrive in Taiwan on Tuesday evening local time and meet with Taiwanese government officials, in what would be the first visit by a House speaker to the democratically governed island since 1997.

Beijing, which claims Taiwan as its territory, has warned Pelosi and the US administration not to step foot there. Chinese officials have threatened unspecified military countermeasures should her visit go ahead.

Taiwan is a democratic self-ruled island that China perceives as a distant island, and Beijing has been vocal about its opposition to Pelosis's visit.

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In a daily press Monday, we wish to assure the United States that China is standing by, that the Chinese People's Liberation Army will never stand idle, and China will take aggressive measures to protect its sovereignty and territorial integrity.

According to Chen Zhao, the actions Beijing takes might impose more sanctions on China, increasing the risk of a direct military conflict between the United States and China.

Investors this week are awaiting the July nonfarm payrolls report, which will be released on Friday, for further insight into the economy and the job market. Uber (UBER) - Get Uber Technologies Inc. Report, PayPal (PYPL) - Get PayPal Holdings Inc. Report, Advanced Micro Devices (AMD) - Get Advanced Micro Devices Inc. Report

CVS Health (CVS) - Get CVS Health Corporation Report, Yum! Brands (YUM) - Get MGM Resorts International Reportand eBay (EBAY) - Get eBay Inc. Reportwill report their second-quarter earnings reports on Wednesday, while Alibaba (BABAF) - Get Warner Bros. Discovery Inc. Reportand Block (SQ) - Get Block Inc. Class A Report will release their second-quarter results on Thursday.

Pinterest (PINS) - Get Pinterest Inc. Class A Reportshares were up more than 18% in premarket trading after the online visual inspiration board company reported weak second-quarter results, which it said were impacted by a decline in advertising revenue as well as increased costs, but an increase in users.

According to finance director Todd Morgenfeld, the company saw signs of decline in the consumer packaged goods category, big-box stores, and mid-market advertisers. The digital advertising environment will continue to be challenging.

Elliott Management, an activist investor, has announced that it is Pinterest's leading investor, and that it is confident in the company's value-creation potential.

Caterpillar (CAT) - Get Caterpillar Inc. Report The heavy equipment company reported second-quarter results before the opening bell that surprisingly beat analysts' expectations. The company reported adjusted per-share earnings of $3.18 on $14.2 billion in sales.

Wall Street was looking for roughly $3.03 in adjusted per-share earnings from about $14 billion in equipment sales.

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