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?
Wall Street concludes in the red due to trade concerns
On Wednesday, Wall Street headed south in the face of an abrupt leap in trade contradictions between the United States of America and China. As a result, the Dow Jones index was deprived of all the advantages it gained since the start of 2018.
American leader Donald Trump threatened to put an additional 10% tariff on imports of goods from China worth $200 billion. Responding to Trump’s move, the Chinese government pledged to roll out its own defensive measures.
Trump told that he made up his mind to impose another bunch of duties after China announced the introduction of tariffs on imports of American goods worth $50 billion, responding to similar measures by the US government on Friday.
The Dow Jones index went down by 1.15% showing an outcome of 24,700.21, while the S&P 500 index lost 0.40% trading at 2.762.57. As for the Nasdaq Composite index, it declined by 0.28% hitting 7.725.59.
At the same time, at the beginning of the trading session the key indices managed to regain some of the losses. Considering the increased trade tension, some market participants labeled the dive of American equities as small.
Besides this, the index of small-cap businesses Russell 2000, whose components turn to be more focused on the domestic market, rallied by up to 0.1%.
The equities of Boeing went down by 3.8%. Additionally, the paper maker of construction equipment Caterpillar lost 3.6% in the face of the trade dispute between the two key economy of the world.
The industrial index of S& P went down by nearly 2.1%, which is the greatest one-day percentage sin for nearly two months. As a matter of fact, the equities of chip makers, a considerable part of the proceeds of which account for China, headed south too.
Besides coronavirus, other news has been driving the stocks of Apple, Wallmart and General Motors to the lower levels.
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