The Dow Jones Industrial Average plunged more than 600 points Monday as investors sought shelter from an escalating trade war between the USA and China. Farming equipment maker Deere drove losses in the industrial sector. Hopes for a resolution had helped push the market to its best yearly start in decades.
Gloy, an agriculture economist and a partner in the online research website Agriculture Economic Insights, said he fears there may be no end in sight to the Trump administration's trade dispute with China.
"We've been taken advantage of on all of our trade deals, practically", said Trump. Eastern Time. Boeing and Caterpillar fell the most in the Dow.
US farmers are among those most hurt by the trade war, with soybean sales to China plummeting and USA soybean futures hitting their lowest level in a decade.
Technology stocks were bearing the heaviest losses.
Safe-play holdings were the only winners as traders sought to reduce their exposure to risk. Utilities were the only sector to rise on the stock market, and prices for USA government bonds, which are considered ultra-safe investments, rose sharply, sending yields lower. Benchmark 10-year Treasury notes last yielded 2.4157% compared with a US close of 2.405% on Monday.
Overseas markets also fell. The index had earlier fallen as much as 1.25% to its lowest since January 30.
The single currency was up about 0.1% on the day at $1.1238, while the dollar index, which tracks the greenback against a basket of six major rivals, was almost unchanged at 97.313.Читайте также: TSMC reportedly preparing for volume production of Apple's A13 SoC
China said it will impose higher tariffs on $60 billion worth of American-made products on June 1 as payback for President Trump's decision last week to jack up US tariffs on Chinese goods to punish Beijing after trade talks fell apart heading into the weekend. According to the report, United States companies and consumers have borne all of the costs of Trump's tariffs to date, while Chinese manufacturers have remained notably unscathed.
The US and China have been involved in an all-out economic battle since early a year ago when Trump accused Beijing of stealing trade secrets and forcing foreign companies to give up technology in order to gain access to Chinese markets.
"Farmers I talk to, I've been surprised they're supportive as they are, but I think it's starting to wane", he said. "There are also no agreements so far", Kremlin spokesman Dmitry Peskov told the Interfax news agency. Unlike many other news organizations, we have not put up a paywall. But markets there are still higher than analysts had predicted. Instead of a sharp contraction, profits for the S&P 500 are down less than 1%.
The escalating trade war threatens to spoil an expected earnings recovery in the second half, however.
Sending Wall Street into a slide, China announced higher tariffs Monday on $60 billion worth of American goods in retaliation for President Donald Trump's latest penalties on Chinese products.
Elsewhere in the market, generic drug developers slumped after many of them were accused of artificially inflating and manipulating prices. The lawsuit from attorneys general in more than 40 states alleges that for many years the makers of generic drugs worked together to fix prices.
Teva, which was specifically mentioned, sank 14.8%.
Ride-sharing company Uber tumbled another 11.5% on its first full day of trading following its rocky debut on the stock market Friday. The stock had priced at $45 at its initial public offering.При любом использовании материалов сайта и дочерних проектов, гиперссылка на обязательна.
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