Posted on 03/22/2018 2:49:13 PM PDT by reaganaut1
Trade war fears that have roiled the markets for two weeks intensified Thursday, sending the Dow Jones Industrial Average tumbling more than 700 points and adding to concerns that stocks could be headed for a larger reckoning.
Thursday’s selling, which sent shares of manufacturers, aluminum producers and steelmakers sharply lower, marked the culmination of months of growing investor anxiety over the course of U.S. trade policy. It came at a time when many say the market was already under pressure, gripped by fears over rising interest rates and sliding technology shares.
Trade tensions ratcheted higher, as the Trump administration said it would impose tariffs on tens of billions of dollars of Chinese imports on top of taxing steel and aluminum imports—provoking the ire of officials from China to Germany to Mexico.
Investors had widely brushed off concerns about trade fears and rising interest rates until earlier this year. But signs that interest rates will rise more quickly than expected, along with the Trump administration’s aggressive push to narrow the U.S.’s trade deficit, drove a resurgence in volatility and renewed worries among investors that the nine-year bull market is losing its momentum.
“The stakes are getting higher and larger, and that’s what the market is thinking about,” said Ken Taubes, U.S. chief investment officer at Amundi Pioneer. Investors are concerned that China will retaliate, leading to “tit-for-tat” escalations of policies hindering trade, leading to slower growth, he said.
The Dow industrials fell 724.42 points, or 2.9%, to 23957.89, posting their biggest one-day percentage decline since Feb. 8, when they fell into correction territory for the first time in more than two years. The S&P 500 fell 68.24 points, or 2.5%, to 2643.69, sliding back into negative territory for the year, while the Nasdaq Composite lost 178.61 points, or 2.4%, to 7166.68.
(Excerpt) Read more at wsj.com ...
The markets don’t like uncertainty and nothing is more uncertain than a trade war.
This is going to be a giant mess.
Tariffs. We’re all gonna die.
Investors buy low sell high now is a money maker time to many people spook to easy everything is long term except tech.
A trade war is NOT a negotiating tactic. Shaking my head here ......
Right it's all about trade nothing having to do with Facebook's unethical behavior with user data. Even though Tech has been driving the market and FB has popped the Tech bubble.
Poppycock. A trade war has been conducted against US product for years, with countries heavily subsidizing their own industries for make-work and dumping substandard product on the US. We’re not starting anything, we’re just fighting back for a change.
When buying a piece of property, you offer an insulting price nicely. The seller thinks you are ignorant...a nice but ignorant rube.
But then he comes down a little bit..and you make a stupid counter offer and show him the cash.
His appetite is whetted. He sees the cash and thinks you are stupid.
You keep pulling down to his point of no return. He has one, otherwise he would not be selling.
Pull him down to his absolute lowest price...and then evaluate the investment.
Does it make sense at that price. If so, execute.
If not, thank the other side profusely and walk away.
Definitely a good time to buy if you believe in the Trump economy.
great buying opportunity for stocks.
i am not worried.
part of MAGA means getting treated fairly by other nations. if that means a bunch of rich wall street guys can’t go on a third cruise this year, so be it.
if tariffs were forever, that’d be one thing. if they are changed when nations start treating us fairly, then i am fine.
just say five hundred steel workers were hired to start up an idle plant in illinois. those five hundred will add tons of auxilary jobs and business to cities nearby...maybe even more than make up for the tariff.
if i am wrong, i’ll be glad to see the tariffs lifted. but i know trump is right when he says our manufacturing has been decimated the last thirty years or so.
If I were a Wall Street trader, I’d be more panicked by the @#$%! budget bill for FY 2019 that the Congress is expected to pass at any moment. Perhaps the WSJ reporters should have asked a few folks on the floor about that monstrosity.
Tariffs are Patriot candy. More tariffs please. Lots more.
Well we’ve been in a trade war for 3 decades dumb a$$. How many times do you have to be told this?
Why aren’t the Gook tariffs portrayed as bad and harmful?
“Tariffs are bad for consumers”
Then go complain to the Europeans and Chinese for placing them on us.
We are in a f-—ing trade war now! We are finally fighting back!
All impediments to trade are harmful. We were on the verge of removing a block of those impediments across Asia and putting Chinese tariffs in the gun sites. Then Trump pulled the plug. Now Chinese tariffs are just going to ratchet up. Boeing is the biggest decliner today on fears of retaliation from China.
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