The so-called “stock market bloodbath” has continued on Friday with major indices falling down to the lows of the last October. What's going on?
American equities are seen tumbling
On Thursday, the American stock market dived at the beginning of the trading session amid news that US President Donald Trump canceled a scheduled meeting with North Korean leader Kim Jong-no.
In a letter to Kim, uncovered by the White House on Thursday, US President stated that he had made up his mind to cancel the meeting expected to take place in Singapore on June 12 because of great anger as well as open hostility in Pyongyang's last statement.
Concerns about US trade protectionism also put pressure on financial markets.
On Wednesday, Trump ordered the launch of an investigation into national security with regard to imports of vehicles that could lead to the introduction of new tariffs similar to those duties imposed in March on import of steel and aluminum. China labeled this step as abuse of national security issues and pledged to protect its own interests.
The Dow Jones index went down 1.07% ending up with an outcome of 24,620.44, the S&P 500 index dived by 0.89% showing 2,708.91, while the Nasdaq Composite index lost up to 0.89% hitting 7.360.19.
Most of the major industry indices of S&P are traded in the red zone, while the leaders of the fall are the energy sector, which declined 1.8% because crude prices sagged.
The threat of the US imposing duties on vehicles pushed down equities of European as well as Asian automotive companies, while American producers turn out to be more expensive. Equities of Ford and General Motors gained 1% and 0.5% respectively.
Quoted in the United States, equities of Fiat and Ferrari went down by about 2.7% and 0.6% respectively.
Shares of Best Buy Co inched down approximately 7.4% because the retailer reported a slowdown in online sales, although quarterly comparable sales surge exceeded forecasts.
Besides coronavirus, other news has been driving the stocks of Apple, Wallmart and General Motors to the lower levels.
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