Stocks Losses Extend To Friday

Stocks on Friday extended their losing streak to a fifth day, with investors growing more cautious about the COVID-19 pandemic's impact on the economy, according to a Yahoo Finance report.

Photo Insert: Stocks suffered following news on the little progress made mending the chasm between the US and China.

President Joe Biden spoke with Chinese President Xi Jinping for the first time in months, provided modest comfort to investors early in the session.

While little progress was made, the call highlighted how the world's two largest economies — which have a raft of differences on critical policy issues between them to work out — are still keeping the lines of communication open.

However, after Bloomberg reported that the Biden administration may investigate Chinese subsidies — and their impact on the U.S. economy — stocks reversed early gains. The Dow shed nearly 300 points, while S&P 500 Index capped its worst streak since a 5-day slide that ended on February 22.

"The Sino-American relationship is in disrepair, and today's call does not seem to change this," noted Marc Chandler, chief market strategist at Bannockburn Global Forex, in a morning note he entitled "frenemies talk, but progress elusive."

He added: "The US appears to list actions it wants China to take, while China's demands seem minimalist: Quit demonizing it and respect its red lines. Yet its red lines strike at the very heart of the international order, such as its claims on most of the South China Sea and its aggressive provocative actions in the region," Chandler added.

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