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| Dow tumbles 600 points as trade war fears rattle Wall Street - business live | Dow tumbles 600 points as trade war fears rattle Wall Street - business live |
| (32 minutes later) | |
| CNN’s Anneken Tappe says the Dow is having a “terrible day” - and it’s hard to argue. | |
| She writes: | |
| It’s down some 600 points, falling below 26,000 points — its worst day since January 3, when Apple warned it would miss its earnings forecast because of weak iPhone sales in China. | |
| The S&P 500 (SPX) is down 2.1% and the Nasdaq (COMP) is looking at a 2.4% loss, having fallen below 8,000 points for the first time since April 18. | |
| Here's why the Dow Jones dropped 600 points today @CNN https://t.co/Ax4xSQ4mbN | |
| Here’s the situation on Wall Street: | |
| Dow: down 565 points at 25,872, down 2.1% | |
| S&P 500: down 59 points at 2,872, down 2% | |
| Nasdaq: down 198 points 7,925, down 2.4% | |
| A falling tide drags down all boats. | |
| Each of the 30 stocks on the Dow is in the red as the final hour of trading rumbles on. Verizon is the ‘top mover’, only down 0.75%, while Boeing is the worst-performing stock, down over 4%. | |
| Most of the S&P 500 have also fallen: | |
| There's only around 25 stocks in the S&P 500 higher today, with not a single Dow stock in the green. Here's a snapshot of what's working: https://t.co/kUuwYk2P3q pic.twitter.com/QquNvhq04q | |
| It’s looking like a tense day on the New York Stock Exchange..... | It’s looking like a tense day on the New York Stock Exchange..... |
| A handy explanation of what’s going on: | A handy explanation of what’s going on: |
| Why did Trump threaten to raise China tariffs – and what now? | Why did Trump threaten to raise China tariffs – and what now? |
| Yikes! The Dow is now down 600 points, with just over an hour’s trading to go. | Yikes! The Dow is now down 600 points, with just over an hour’s trading to go. |
| That’s a plunge of over 2% today, as traders show mounting concern over the trade war situation. | That’s a plunge of over 2% today, as traders show mounting concern over the trade war situation. |
| Such a sell-off doesn’t suggest much optimism that negotiations with China’s Liu He will bear fruit later this week. | Such a sell-off doesn’t suggest much optimism that negotiations with China’s Liu He will bear fruit later this week. |
| Marketwatch have a good reminder of why trade tensions at soaring, for anyone trying to catch up with today’s drama: | Marketwatch have a good reminder of why trade tensions at soaring, for anyone trying to catch up with today’s drama: |
| U.S. Trade Representative Robert Lighthizer said Monday that the Trump administration will increase tariffs on $200 billion in Chinese goods early Friday. The prospect of higher tariffs had been first raised on Sunday by President Donald Trump, rattling investors who had anticipated that better progress toward a near-term resolution between the two superpowers. | U.S. Trade Representative Robert Lighthizer said Monday that the Trump administration will increase tariffs on $200 billion in Chinese goods early Friday. The prospect of higher tariffs had been first raised on Sunday by President Donald Trump, rattling investors who had anticipated that better progress toward a near-term resolution between the two superpowers. |
| In a briefing, Treasury Secretary Steven Mnuchin, along with Lighthizer, told reporters that the U.S. administration was made aware over the weekend that China was trying to back away from “some of the language” that had been hammered out in prior talks. | In a briefing, Treasury Secretary Steven Mnuchin, along with Lighthizer, told reporters that the U.S. administration was made aware over the weekend that China was trying to back away from “some of the language” that had been hammered out in prior talks. |
| U.S. officials said that tariffs on those Chinese goods will rise from 10% to 20% at 12:01 a.m. Eastern time Friday, and markets will likely be monitoring China for further reaction. | U.S. officials said that tariffs on those Chinese goods will rise from 10% to 20% at 12:01 a.m. Eastern time Friday, and markets will likely be monitoring China for further reaction. |
| US consumers and Chinese factories would both suffer if Donald Trump delivers on his threat to impose tariffs on all imports from China. | US consumers and Chinese factories would both suffer if Donald Trump delivers on his threat to impose tariffs on all imports from China. |
| As this chart shows, toys, clothing and footwear would all be affected (and remember, it’s the importers who pay the tariff). | As this chart shows, toys, clothing and footwear would all be affected (and remember, it’s the importers who pay the tariff). |
| President Trump tweeted he would "shortly" impose 25% tariffs on the rest of US imports from China not yet targeted with Section 301 tariffs. This would mostly hit final consumer products, such as toys, footwear, clothing, and electronics. #PIIECharts https://t.co/FEUFyE0rqH pic.twitter.com/WYfYga4zYC | President Trump tweeted he would "shortly" impose 25% tariffs on the rest of US imports from China not yet targeted with Section 301 tariffs. This would mostly hit final consumer products, such as toys, footwear, clothing, and electronics. #PIIECharts https://t.co/FEUFyE0rqH pic.twitter.com/WYfYga4zYC |
| Hold onto your hats! The Dow is now down 542 points, or 2%, at 25,896, as the rout intensifies. | Hold onto your hats! The Dow is now down 542 points, or 2%, at 25,896, as the rout intensifies. |
| It's like the markets are on a time delay. They are finally realizing tariffs are going up to 25% on Friday. | It's like the markets are on a time delay. They are finally realizing tariffs are going up to 25% on Friday. |
| The old City saying “Sell in May and go away” could prove prescient this year. | The old City saying “Sell in May and go away” could prove prescient this year. |
| It’s only taken a handful of trading days to wipe out April’s gains, which led Wall Street to several record highs. | It’s only taken a handful of trading days to wipe out April’s gains, which led Wall Street to several record highs. |
| 2019 had been a good year for shares - but trade war tensions could yet destroy recent gains.... | 2019 had been a good year for shares - but trade war tensions could yet destroy recent gains.... |
| The Dow Jones industrial average has now fallen though the 26,000 point mark, on track for its lowest close in a month. | The Dow Jones industrial average has now fallen though the 26,000 point mark, on track for its lowest close in a month. |
| The Dow is down 463 points, or 1.75%, at 25,975 as New York traders try to cram in a quick lunch. | The Dow is down 463 points, or 1.75%, at 25,975 as New York traders try to cram in a quick lunch. |
| Industrial and tech stock such as Boeing, Apple and Intel are among the major fallers; they’ll all suffer from a longer or more intense trade war. | Industrial and tech stock such as Boeing, Apple and Intel are among the major fallers; they’ll all suffer from a longer or more intense trade war. |
| Newsflash: Britain’s stock market has closed at a five-week low. | Newsflash: Britain’s stock market has closed at a five-week low. |
| The FSTE 100 has ended the day down 120 points, or 1.6%, at 7,260 points. That’s the lowest level since the end of March, and the biggest one-day fall since 22 March. | The FSTE 100 has ended the day down 120 points, or 1.6%, at 7,260 points. That’s the lowest level since the end of March, and the biggest one-day fall since 22 March. |
| Manufacturing group Melrose led the fallers, down 5.8%, followed by packaging firm Mondi (down 3.9%). | Manufacturing group Melrose led the fallers, down 5.8%, followed by packaging firm Mondi (down 3.9%). |
| The FTSE 250 index also fell sharply, losing 1.2%. | The FTSE 250 index also fell sharply, losing 1.2%. |
| European markets didn’t manage a late revival; the Stoxx 600 index ended down 1.5% in a wide-spread sell-off triggered by trade war worries. | European markets didn’t manage a late revival; the Stoxx 600 index ended down 1.5% in a wide-spread sell-off triggered by trade war worries. |
| Stocks are also falling further on Wall Street, with the Dow Jones industrial average currently 420 points in the red. | Stocks are also falling further on Wall Street, with the Dow Jones industrial average currently 420 points in the red. |
| Stocks hit fresh session lows; Dow off more than 420 points https://t.co/HAi4eL6PlP pic.twitter.com/sYUagCLbBg | Stocks hit fresh session lows; Dow off more than 420 points https://t.co/HAi4eL6PlP pic.twitter.com/sYUagCLbBg |
| Donald Trump and the European Commission have combined to drive European stocks down today, says David Madden of CMC Markets. | Donald Trump and the European Commission have combined to drive European stocks down today, says David Madden of CMC Markets. |
| He writes: | He writes: |
| Stock markets in Europe have suffered severe declines as US-China trade tensions have heightened. The US already imposes a 10% levy on $200 billion worth of Chinese imports, and there is a fear it will be raised to 25% later this week, and the US has also threatened to impose tariffs on $325 billion worth of Chinese imports. The announcement has rocked investment sentiment, and has prompted traders to dump stocks. | Stock markets in Europe have suffered severe declines as US-China trade tensions have heightened. The US already imposes a 10% levy on $200 billion worth of Chinese imports, and there is a fear it will be raised to 25% later this week, and the US has also threatened to impose tariffs on $325 billion worth of Chinese imports. The announcement has rocked investment sentiment, and has prompted traders to dump stocks. |
| To make matters worse for investors, the EU have lowered their growth outlook for the eurozone, and it now expects 2019 growth to be 1.2%, and the previous forecast was 1.3% ,and the growth forecast for 2020 has been lowered to 1.5% from 1.6%. The timing of the EU’s announcement isn’t great, but global trade tensions are likely to hurt the region. | To make matters worse for investors, the EU have lowered their growth outlook for the eurozone, and it now expects 2019 growth to be 1.2%, and the previous forecast was 1.3% ,and the growth forecast for 2020 has been lowered to 1.5% from 1.6%. The timing of the EU’s announcement isn’t great, but global trade tensions are likely to hurt the region. |
| There’s no sign of a turnaround on Wall Street yet. | There’s no sign of a turnaround on Wall Street yet. |
| The Dow is now down 394 points, or 1.5%, at 26,044, threatening to fall through yesterday’s low points. | The Dow is now down 394 points, or 1.5%, at 26,044, threatening to fall through yesterday’s low points. |
| Trump’s threat to hike the tariffs on imports from China has brought volatility roaring back into the markets this week. | Trump’s threat to hike the tariffs on imports from China has brought volatility roaring back into the markets this week. |
| The VIX index (commonly known as the fear gauge) has jumped to its highest level since the end of January. | The VIX index (commonly known as the fear gauge) has jumped to its highest level since the end of January. |
| Looking for an excuse to take profit? Try a Google search #vix #stocks pic.twitter.com/AUjn3jU39k | Looking for an excuse to take profit? Try a Google search #vix #stocks pic.twitter.com/AUjn3jU39k |
| European stock markets are now in retreat, after today’s growth downgrades dampened the mood. | European stock markets are now in retreat, after today’s growth downgrades dampened the mood. |
| The German DAX and French CAC are both down around 1.4%, as electronic red ink runs across the bourses again. | The German DAX and French CAC are both down around 1.4%, as electronic red ink runs across the bourses again. |
| Connor Campbell of SpreadEx says: | Connor Campbell of SpreadEx says: |
| A couple of unpleasant revisions to the EU’s economic forecasts only added to the Tuesday’s sense of unease, the markets crumbling under the renewed trade tensions. | A couple of unpleasant revisions to the EU’s economic forecasts only added to the Tuesday’s sense of unease, the markets crumbling under the renewed trade tensions. |
| Manufacturing and technology stocks are leading the sell-off in New York. | Manufacturing and technology stocks are leading the sell-off in New York. |
| Boeing has lost 2%, followed by Microsoft (-1.8%) , Apple and Intel (both down 1.6%) and Pfizer (down 1.5%). | Boeing has lost 2%, followed by Microsoft (-1.8%) , Apple and Intel (both down 1.6%) and Pfizer (down 1.5%). |