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Home / Business / Trump Tweetstorm sinks Wall Street as the trade war rages on

Trump Tweetstorm sinks Wall Street as the trade war rages on



NEW YORK: Wall Street plummeted on Friday as China and the United States traded their latest salvo in a prolonged trade war, frightening investors and wiping light profits following a generally positive speech by US Federal Reserve Chairman Jerome Powell.

All three major US stock indices fell after President Donald Trump tweeted that US companies should "seek an alternative to China immediately".

Trump urged American companies to leave China in response to an earlier announcement from Beijing to introduce a new round of retaliatory tariffs for additional US $ 75 billion worth of goods Toughening up the stakes in a fierce trade The markets were confused for months and showed little sign of slowing down.

"It's awesome," said Ken Polcari, managing director at Butcher Joseph Asset Management, New York. "One day (Trump) tells you that everything is going well with China and today he says that everyone is coming out of China."

"That's why the market is taking the last dive south just because of (trumps) .Tweets," added Polcari. "Not for Jackson Hole or anything Powell said, it's all scared and it's Friday and a lot can happen on the weekend."

At the beginning of the session, US Federal Reserve Chairman Jerome Powell talked about the Fed's annual meeting in Jackson Hole, Wyoming, reiterating that the central bank would "act appropriately" to keep the current economic expansion going but otherwise few indications as to whether a policy rate cut was in sight at next month's policy meeting.

President Trump's tweeted response to the speech described Powell as an "enemy."

US Treasury yields on the 10-year and 10-year Treasuries entered the Inversion Zone, a classic red flag of the recession. The curve has been traded in the last three days with inversion and out-of-inversion.

The CBOE Volatility Index, a measure of market anxiety, rose 3.85 points to 20.49, its highest level in a week.

The Dow Jones Industrial Average dropped 489.79 points or 1.87 percent to 25,762.45 points, the S & P 500 lost 58.52 points or 2.00 percent to 2,864.43 points and the Nasdaq Composite fell up 201.95 points or 2.53 percent to 7,789.44 points The S & P 500 was in negative territory, with tech, energy, consumer discretionary, industrial and communications services down at least 2 percent.

Apple Inc.'s significant exposure to the Chinese market slipped 4.5 percent

] Trading-sensitive chip makers posted a decline in martial-trade rhetoric, with the Philadelphia SE Semiconductor Index down 3.9 Percent yielded.

Salesforce.com Inc grew 3.1 percent, according to the cloud-based service provider's earnings report. [19659002] Dealer Fo ot Locker Inc. fell 16.6 percent after disappointing second-quarter results.

Computer hardware company HP Inc. announced the resignation of its CEO, Dion Weisler, and predicted lower than expected fourth quarter earnings.

The earnings season for the second quarter is essentially in the can, 482 companies in the S & P 500 have reported. Of these, 73.9 percent outperformed consensus expectations, according to the refining data.

Analysts now report 3.2 percent earnings growth year-over-year, up 0.3 percent from the beginning of July.

The decrease in emissions exceeded the increase in NYSE emissions by 4.10 to 1; on the Nasdaq favored a ratio of 4.74 to 1 declines.

The S & P 500 recorded 33 new 52-week highs and 28 new lows; The Nasdaq Composite recorded 37 new highs and 142 new lows.

(coverage by Stephen Culp, additional coverage by Charles Mikolajczak, editorial by Chizu Nomiyama)


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