The Wall Street Stock Session ended with downturns against the background of renewed trade tensions between the US and China. US President Donald Trump has criticized Beijing that he does not buy soybeans from the US – a comment that pushed the index S&P 500 Down, CNBC reported.
The wide market indicator dropped by 0.3%after an extremely volatile day, in which it first dropped by 1.5%and then raised by 0.4%. The technological measure Nasdaq Composite decreased by 0.9%after giving way to 2%earlier in the day. The Blue Chip Index Dow Jones Industrial Average ended with an increase of 0.4%.
Trade began in negative territory after China strengthened its control over global transport, which further inspired tensions in international trade. The country has imposed sanctions against five US subsidiaries of South Korean Hanwha Ocean, banning Chinese organizations and individuals from doing business with them. The Chinese government said this step aims to strengthen national security.
US Finance Minister Scott Badensont told the Financial Times that Beijing’s latest actions show economic weakness, adding that Chinese leaders “want to get everyone down with them.” On Tuesday, US sales representative Jamison Greer said that whether an additional 100% duty for Chinese imports would be introduced, as Trump had previously threatened, would depend on the next actions of the Asian country.
On Tuesday, however, Trump again attacks China on the social network Truth Social, saying the country’s refusal to buy American soybeans is an “economic hostile act”.
Volatility Index Cboe (VIX) – Also called the “Wall Street Fear Index” – has increased above Friday’s level, signaling increasing anxiety among investors that there will be no easy solution to the trade conflict. He reached a four-month peak of more than 22 points before returning to about 20 points later in the day.
The shares of technological giants as Nvidia They remained under pressure. However, the strong start of the reports season gave hope that the economy’s foundations remained stable. The shares of Citigroup And Wells Fargo They rose by 4.6% and 8.3% respectively thanks to better than expected financial results. JPMorgan And Goldman Sachs They also exceeded the forecasts, but their papers were more expensive.
Commercial tensions are increasing since the end of last week, when Trump threatened to impose a new 100% duty on Chinese imports, which led to sharp declines in the markets. On Friday, Dow Jones lost over 800 points, and the S&P 500 reported its biggest one-day decline since April 10.
On Sunday, however, the US head of state softened its tone, stating in Truth Social: “Don’t worry about China, everything will be fine.”
This statement led to a strong rise in the markets on Monday.
“It is not yet clear what the outcome of this commercial escalation between the US and China will be, and this is something the market is trying to make sense,” said Rob Howard, a senior strategist at the US Bank Wealth Management. “This is affecting investor sentiment now, although today’s reports show that the financial sector performs well and consumption remains stable,” he added.
At the end of today’s stock session yield on 10-year US state securities decrease to 4.028%, and the one in 30-year-olds – up to 4.628%.
Dollar indexwhich measures the power of US money according to a basket of competitive currencies, registers a decrease of 0.2% to 99.068 points.
On the commodity markets futures on the international oil benchmark Brent They fell 1.77% to $ 62.2 per barrel, and those on the American variety WTI – With 1.61% to $ 58.53 for a barrel.
Gold He rose by 0.68 percent to a price of $ 4161.2 an ounce.
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