Dow takes 700-point nosedive as trade war escalates
Wall Street recoiled as the U.S.-China trade war threatened the global economy.
While many business executives and investors had hoped that tensions between the United States and China would be resolved easily, the recent developments show how much each country is digging in for a long fight.
“I love the position we’re in,” Trump said at the White House. “I think it’s working out really well.”
Amid signs that investors were questioning his adversarial approach, Trump attempted to assuage the public in a series of Twitter posts. But some of his tweets contained typos and misspellings, suggesting that his comments had not been thoroughly vetted by White House officials and might not represent fully planned-out policy initiatives.
As Beijing announced steep tariffs on $60 billion in U.S. goods, President Trump’s efforts to calm investors showed signs of cracking.
U.S. markets plunged Monday as China said it would raise steep tariffs on $60 billion in U.S. goods, upping the stakes of a trade war that threatens to imperil the global economy.
The Dow Jones industrial average was down more than 700 points, or nearly 3 percent, in afternoon trading as investors feared that a trade standoff with China would escalate into a full-blown economic crisis — tipping the U.S. and world economies into recession. Dragging the Dow were Apple, Caterpillar and Boeing, with drops of 5.78 percent, 5.11 percent and 4.65 percent respectively. The blue-chip index was headed for its lowest close since January.
The Standard & Poor’s 500-stock index was down 2.5 percent and the tech-heavy Nasdaq Composite was off 3.5 percent, its worst day of the year and continuing the losses from last week. Ten out of 11 market sectors were in negative territory around noon. Utilities was the only bright spot.
Both S&P 500 and Nasdaq were on track for their worst day of the year. The S&P on Monday was treading just above a key threshold of 2,800.