Trump makes Wall Street fall by reviving the trade war with China
Wall Street ended the week with a plunge into the red on Friday, following a session dominated by Donald Trump’s threats of a tough response to China’s new tariffs.
The leading index, the Dow Jones Industrial Average, fell 2.37% to 25,628.90 points.
The Nasdaq, with strong technological color, plummeted 3% to 7751.77 points and the expanded index S & P 500 yielded 3% to 2,847.11 points.
This is the fourth consecutive week of decline for the main indexes of the New York listing.
The New York Stock Exchange had started the session down, Beijing announced before the opening its intention to impose new tariffs on $ 75 billion of imports from the United States, in retaliation for additional customs duties that plans to establish Washington shortly.
But the clues widened their losses after a series of threatening tweets by Donald Trump, who promised a tough response, evoking “huge sums of money stolen by China in the United States” and hammering his determination to end. “After the retaliation measures announced by Beijing, Donald Trump has ordered US companies to find alternatives to China, which has affected large business-sensitive companies like Apple or Caterpillar,” noted Schaeffer’s Lillian Currens. The apple firm, which manufactures part of its iPhones in China and sells millions of devices, lost 4.6%. That of the manufacturer of construction and construction machinery fell 3.3%.
Trump’s attacks nearly eclipsed the Fed’s boss’s speech earlier in the day. Jerome Powell pointed out that while the US economic outlook remained favorable, trade tensions seemed “to play a role in the global slowdown and weak manufacturing and business investment in the United States.”
In this context, the Fed chairman warned, however, that monetary policy had “no way to use” ready.
Market participants, however, expect a cut in key rates at the Fed’s next monetary policy meeting on 18 September, following the July 31 cut.