Trump took a more confrontational approach with China on Friday.
The market fell sharply for most of Friday as investors braced for President Trump’s announcement regarding China, but despite new sanctions and penalties, stocks turned positive after the phase one trade deal was kept intact.
JPMorgan
JPM strategist Marko Kolanovic, who correctly predicted the market’s recovery in late March, warned investors to be more cautious about stocks because of a possible economic clash with China. “A complete breakdown of supply chains and international trade, primarily between the two largest economies (U. S. and China), would justify equities trading drastically lower,” Kolanovic said in a recent note.
Rising U. S.-China tensions could threaten the market’s recent rally. Trade fears have escalated as both countries continue to blame each other for spreading the coronavirus pandemic. Trump has criticized the Chinese government’s response to the outbreak and has repeatedly touted a controversial theory that the virus originated in a Wuhan lab.
