Dow is still hopeful despite 800-point plunge


Wall Street closes with heavy losses and the Dow Jones drops almost 800 points.

That was quick. Wall Street’s enthusiasm for the trade cease between the United States and China has completely vanished.

The Dow fell 799 points, or 3.1%, on Tuesday. At one point, 818 points fell. The S & P 500 fell 3.2%, while the NASDAQ fell 3.8%.

The great technological actions fell sharply. Apple and Alphabet lost more than 4% each. Amazon and Netflix fell more than 5%.

Dow dives 700 points as China trade truce gloss wears off

Wall Street closed strong losses today and its main indicator, the Dow Jones Industrial, fell almost 800 points between market fears to a slowdown in economic growth. According to the data at the end of the session, the Dow Jones cut 3.10% or 799.36 points, up to 25,027.07 whole, while the selective S & P 500 yielded 3.24% or 90.31 points, up to 2,700.06.

The composite index of the NASDAQ market, in which important technological firms are listed, lost a notable 3.80% or 283.09 points, to 7,158.43 whole. By sector, only rose that of public utility companies (0.15%), correlated inversely with financial (-4.40%), which negatively impacted the main banks in the country, including Bank of America (-5.43%) or Citigroup (-4.45%).

Other sectors strongly affected today were industrial (-4.35%), non-essential (-3.91%) or technological (-3.86%).

The New York parquet had a terrible day, which analysts attributed in part to a decline in the yield of public bonds and doubts about the effects of the commercial truce that have occurred between the US and China.

Dax under pressure and sliding on Wall Street

The yield on three-year Treasury bonds surpassed that of the five-year bonds on Monday, a move that for many is a sign of a recession, although it may be years away, and that incited operators to sell stock the bench, today paper yields were close to two years and the ten-year, benchmark in the US, which fell and stood at the close of the session at 2.91%.

On the other hand, the 90-day commercial truce established between Washington and Beijing to try to reach an agreement, which on Monday caused Wall Street to shoot up, today raised doubts about the White House’s discrepancies over its entry into force and the President’s tweets. Donald Trump, who said he was a “man of tariffs”.

Dow will host recruiting event in Saginaw

The massive sale of shares cancels the jump of 288 points on Monday in the Dow. That rise had been fueled by the relief of the truce between the United States and China on the trade front. But investors are quickly realizing that the trade war between the United States and China is not over. The tariffs already established remain in force. And new ones could be implemented if the two parties fail to move forward.

“People are still very concerned about the trade war,” said Dan Suzuki, portfolio strategist at Richard Bernstein Advisors. “Financial markets are increasingly showing signs of fear of a recession.”

President Donald Trump did not help the worries of the Wall Street trade war on Tuesday. Trump said he would “happily” sign a fair agreement with China, but would also leave open the possibility that the talks would fail.

The Dow Is Slumping due tosome unsolved Problems

“President Xi and I want this agreement to be successful, and probably will,” Trump wrote on Twitter. “But if you do not remember … I’m a tariff man.”

Those words are likely not to increase confidence among investors who are already worried about the negative consequences of the trade war. Tariffs on steel and aluminum raised the costs of raw materials and affected supply chains. And the uncertainty about commercial policy makes it very difficult for companies to make investment decisions.

In other markets, Texas oil rose to $ 53.25 a barrel and, at the close of the session on Wall Street, gold rose to $ 1,243.70 an ounce, the yield on the 10-year Treasury bond fell to 2,914% and the dollar advanced against the euro, which changed to 1.1341.


Please enter your comment!
Please enter your name here