US stocks trade with modest losses amid renewed US-China trade tensions

Major US equity indices witnessed a weaker opening on Wednesday and were being weighed down by escalating US-China trade conflicts.

Trade tensions between the world’s two largest economies were back in focus after the Trump administration completed a list of $16 billion worth of Chinese imports that will be subject to 25% tariffs, effective from August 23. 

China's commerce ministry responded by imposing retaliatory tariffs of 25% on 333 US products, worth $16 billion, gave investors a reason to pause a multi-session rally that took the broader S&P 500 Index within striking distance of record highs.

Meanwhile, strong corporate quarterly results and the incoming economic data have been supportive of the underlying US economic strength and should continue to help keep a near-term floor for the markets.

During the opening hour of trade, the Dow Jones Industrial Average was down nearly 40-points to 25,589 and tech-heavy Nasdaq Composite lost around 12-points to 7,871. Meanwhile, the broader S&P 500 Index dipped by 3-points to 2,855.