The political turmoil rattled US equity markets overnight, which resumed trading after the Memorial Day long weekend - Dow down -392-points or -1.58% to once again erase year-to-date gains. The broader S&P500 shed -1.16%, with Financials (down -3.4%) leading nine of the eleven sectors into negative territory (with Real Estate and Utilities the only sectors to advance). Morgan Stanley fell -5.8% after the co-head of the bank's wealth management division, Andy Saperstein, told a New York conference that the firm was seeing "obvious headwinds" in transaction revenue among retail clients as activity slowed in March and remained slower through April and May. The technology-centric NASDAQ fell -0.50%. The Trump administration also said on Tuesday that it will continue to take action on trade with China, just days after the two countries announced a tentative solution to their dispute. The White House said in a statement that the United States will release a list of some US$50B worth of Chinese goods that will be subject to a 25% tariff. The United States will also continue to pursue litigation against China at the World Trade Organization.
