Here’s what a pair of tweets on trade can do. The Dow Jones industrial average dropped more than 450 points on Tuesday and had its…
Here’s what a pair of tweets on trade can do.
The Dow Jones industrial average dropped more than 450 points on Tuesday and had its worst performance since Jan. 3. And the other two top gauges of U. S. stocks, the Standard & Poor’s 500 and the Nasdaq, notched their sharpest declines since March 22.
Major U. S. stock indexes fell sharply for a second straight day after President Trump threated a huge increase in tariffs on Chinese goods in two tweets over the weekend.
Investors, who previously hoped this week’s trade negotiations with China would lead to a resolution of trade differences between the U. S. and China, now questioned the progress of the talks following the surprise threat of new tariffs, which could take effect Friday.
“The Trump administration’s doubling down on the China threats has been a gut punch to bulls,” said Daniel Ives, managing director of equity research at Wedbush Securities. “Investors do not want to add risk going into trade talks this week given the shot across the bow from the administration.”
The sudden dip comes after a strong start for stocks in 2019. The longest bull market in U. S. history celebrated its 10th anniversary March 9.
