Dow Jumps 207 Points After Monday's Fall From China Tariffs

Dow Jumps 207 Points After Monday's Fall From China Tariffs

Troy Powers
May 16, 2019

USA stock futures slumped and Treasuries surged, signaling the May 14 relief rally will be short-lived, as fresh concern about the health of the global economy rattled investors still on edge over the trade war.

The move hit stock markets in the U.S. on Monday, with the Dow Jones and the S&P 500 closing down 2.4%, while the Nasdaq index lost 3.4%.

Wall Street witnessed one of its worst selloffs this year in the previous session, with the S&P 500 and the Dow recording their largest percentage drops since January 3 and the tech-heavy Nasdaq logging its worst day in 2019 as investors scoured for safety in low-risk assets.

Prospects of the global economy being derailed by a trade war knocked more than 4pc off the S&P 500 index since it hit an all-time high on May 1, but there was a recovery yesterday as nine of 11 major S&P sectors were higher, led by energy.

On Tuesday, Hong Kong's Hang Seng index fell 1.6%.

He has also threatened more to come with a May 18 deadline looming for him to make a decision on whether to proceed with new tariffs on imported cars and parts. The Westpac-Melbourne Institute Index of Consumer Sentiment rose 0.6 per cent to 101.3 in May, beating expectations the index would fall from its prior reading of 100.7 in April, to 100.4.

In the last five trading sessions, the Dow Jones Industrial Average deceased 4.21 percent, while S&P 500 Index and Nasdaq Composite Index dropped 4.11 percent and 5.86 percent, respectively. Many are still confident that both sides will eventually reach a deal.

CSL gained 1.5 per cent to $200.84.

Putin, Trump hold phone conversation
Coats and a slew of other officials - then-CIA Director Mike Pompeo , FBI Director Chris Wray, NSA Director Adm. White House spokeswoman Sarah Sanders told reporters that the call was an "overall positive conversation".

"Such an inversion of the curve has often been accompanied, or followed, by a downturn in the US economy and stock market", Mr. Higgins said.

The Russell 2000 index of small company stocks climbed 20.06, or 1.3%, to 1,543.06.

Slightly encouraging economic data and a better-than-feared first-quarter earnings season have helped soothe investor worries about the region, Paul O'Connor, head of the UK-based multi-asset team at Janus Henderson, said. Cisco Systems also gained 1.4% after an analyst at Bank of America touted it as the tech stock to buy amid rising U.S. China said in a statement that the U.S.′ decision jeopardized the interests of both countries and does not meet the "general expectations of the worldwide community", according to a Google translation.

Alec Young, managing director of global markets research at FTSE Russell, said investors are increasingly anxious an anticipated second-half profit rebound may now evaporate as Trump's threat to tariff the remaining $325 billion in Chinese imports will disproportionately target consumer products like iPhones, "thereby posing a greater threat to the consumption-driven USA economy". Iranian President Hassan Rouhani said that it would begin stockpiling heavy water and low-enriched uranium unless non-U.S. signatories take steps to shield the Iranian economy from Trump-Administration sanctions that have been crippling its economy.

European stocks turned lower on Wednesday alongside U.S. equity futures as the rebound in global shares struggled to maintain its momentum. Treasury prices and yields move in opposite directions.

Many market players "downplayed" the significance of the March inversion, he added, believing the Federal Reserve would sit on its hands so as not to derail the economic expansion.

Brent crude lost 0.18% to $71.11 per barrel. Heating oil rose 2 cents to $2.06 a gallon. Natural gas inched 0.1% higher to $2.62 per 1,000 cubic feet.

And oil prices edged up after Monday's losses as concerns about the impact on demand from the trade war offset geopolitical tensions in the Middle East, the crisis in Venezuela and "sabotage attacks" on two Saudi Arabian oil tankers.