Day two of this new trade war between the US and China has ruffled feathers for buyers and sellers in the stock market, with the Dow Jones plummeting more than 600 points today:
Dow plummets over 610 points amid US-China trade tensions https://t.co/ZCwe3oy1mG
— Fox News Alert (@foxnewsalert) May 13, 2019
FOX BUSINESS – U.S. Opens a New Window. stocks tumbled on Monday with the Dow Jones Industrial Average falling 617 points recovering from a loss of over 700 points early afternoon as trade tensions and rhetoric between the U.S. and China escalate.
The Dow and the S&P 500 lost over 2 percent, marking the worst start to May since 1970. The Nasdaq Composite lost over 3 percent, the worst start to May since 2000.
According to Yahoo Finance China says they will “never surrender” to external pressures.
Talking heads on some of the business new channels, like Fox Business, are suggesting that while this trade war will hurt the US, it will hurt China far worse.
I think the idea is that it will take some short-term pain to force China’s hand.
It’s also being reported that Trump hasn’t decided on implementing more tariffs on China:
President Donald Trump on Monday said he hadn’t yet decided about going forward with fresh 25% tariffs on $325 billion in Chinese goods. Speaking to reporters during an Oval Office meeting with Hungary’s prime minister, Trump said “I love the position we’re in” with China. Trump said he’d meet with Chinese President Xi Jinping at a G-20 summit next month in Japan and said that meeting could be “fruitful.”
We’ll see how all of this pans out. If there is pain, hopefully it won’t last long. But don’t hold your breath…