NEW YORK (Reuters) – A gauge of global stocks declined for a second straight session and U.S. Treasury yields rose as trade concerns again began to bubble and U.S. earnings season picked up steam.

On Wall Street, CSX Corp was one of the biggest drags on the S&P 500. The railroad tumbled 10.44% after it reported quarterly earnings that missed expectations and cut its full-year revenue view as weakness in its trade-related intermodal business weighed.

The results come after U.S. President Donald Trump renewed his threat to tax another $325 billion of Chinese goods on Tuesday, which sent stocks lower. In addition, the U.S. could also face Chinese sanctions, following a World Trade Organization ruling on Tuesday, further complicating trade talks between the two countries.

U.S. stocks have eased the past two sessions, after a rally fueled by expectations the U.S. Federal Reserve will cut rates at the end of the month sent major averages to record levels, as earnings season has gotten off to a sluggish start.

“It’s hard for this for this market to push up substantially without some resolution on trade,” said Rick Meckler, partner, Cherry Lane Investments in New Vernon, New Jersey.

Big banks such as Citi, JPMorgan and Wells Fargo have recorded drops in net interest margins, a sign low interest rates are hurting the bottom line.

Bank of America shares were up 0.8% after it reported results on Wednesday and lowered its annual net interest income guidance.

While it is still early in what is expected to be a lackluster reporting season, the earnings growth rate for the second quarter now stands at 0.4%, according to Refinitiv data. Expectations were recently calling for a decline in S&P 500 results.

The Dow Jones Industrial Average fell 43.83 points, or 0.16%, to 27,291.8, the S&P 500 lost 8.42 points, or 0.28%, to 2,995.62 and the Nasdaq Composite dropped 14.81 points, or 0.18%, to 8,207.99.

European shares were lower after holding near the unchanged mark in the earlier portion of trading on a mixed bag of corporate earnings.

The pan-European STOXX 600 index lost 0.32% and MSCI’s gauge of stocks across the globe shed 0.24%.

Along with the trade concerns, U.S. Treasury yields moved higher after data showed weakness in the housing market for a second straight month.

“The housing starts were a little weaker but the building permits were definitely significantly weaker,” said Justin Lederer, an interest rates strategist at Cantor Fitzgerald in New York.

FILE PHOTO: The London Stock Exchange Group offices are seen in the City of London, Britain, December 29, 2017. REUTERS/Toby Melville/File Photo

Benchmark 10-year notes last rose 12/32 in price to yield 2.0781%, from 2.12% late on Tuesday.

The dollar pulled back from strong gains on Tuesday in the wake of better-than-expected monthly retail sales data, while Sterling bounced after touching a 27-month low versus the greenback as no-deal Brexit concerns mounted.

The dollar index fell 0.19%, with the euro up 0.16% to $1.1227. Sterling was last trading at $1.2432, up 0.23% on the day.

Additional reporting by Medha Singh in Bengaluru and Karen Brettell in New York; Editing by Nick Zieminski

Our Standards:The Thomson Reuters Trust Principles.

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