Posted on 05/13/2019 8:04:07 AM PDT by SeekAndFind
Stocks fell sharply on Monday, giving back the gains from a strong turnaround in the previous session, after China decided to raise tariffs on some U.S. goods as the ongoing trade war between the world’s largest economies intensifies.
The Dow Jones Industrial Average traded down 490 points, while a 2.8% drop in the tech sector pushed the S&P 500 down by 1.9%. The Nasdaq Composite dropped 2.6%.
China will hike tariffs on $60 billion worth of U.S. imports, starting on June 1. The goods targeted include a broad range of agricultural products. This comes after President Donald Trump raised tariffs on Chinese imports last week. 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 international community,” according to a Google translation.
Trade bellwether Caterpillar fell more than 4% while Apple dropped 4.6%. Boeing shares also declined more than 2.5% amid speculation the airplane maker could be singled out by China in the trade war.
Asian markets fell broadly. The Nikkei 225 index declined 0.7% Monday while the Shanghai Composite pulled back 1.2%. European stocks also dropped. The Stoxx 600 index fell 1.3% while the German Dax dipped 1.6%.
“Volatility is going to persist. People don’t know what to make of it,” said JJ Kinahan, chief market strategist at TD Ameritrade. But “this is more of a re-evaluation of stocks than it is a pure panic. Bonds have rallied over the last couple of weeks, but if this was a panic you’d see people coming a lot more for bonds.”
(Excerpt) Read more at cnbc.com ...
TRUMP’s TWEET:
Donald J. Trump
@realDonaldTrump
I say openly to President Xi & all of my many friends in China that China will be hurt very badly if you don’t make a deal because companies will be forced to leave China for other countries. Too expensive to buy in China. You had a great deal, almost completed, & you backed out!
47.1K
6:49 AM - May 13, 2019
The benchmark 10-year Treasury yield fell to 2.41% on Monday while the 2-year rate dipped to 2.19%. The Cboe Volatility index, which is considered to be the best fear gauge in the stock market, rose 3.8 points to 19.85.
double the tariffs to 50%
They are trying to renege on a deal THEY ALREADY AGREED TO.
This is their typical MO.
The agree to whatever, then just refuse to abide by it, and the past presidents let them get away with it.
The presidents got to say “we made a great deal”, but if the Chinese do not follow through they were never held accountable.
China cannot win a Trade War.....
They cannot replace US cashflow, no matter what they do...
They are foolish to try.... If they want an protracted situation, they will LOSE big time....
It is better to have less then to support an evil regime.
The chinese can’t cut trade with us without depriving themselves of the materials they need to trade with others.
Yep , stop buying junk from China and buy from friendly countries
China is in big trouble and they are running out of dollars very fast.
NO more China!
I hope President Trump ups it to 60 percent , forget China!
I’m sure astute Freepers knew all along that the President’s recent trip to Vietnam had nothing to do with that summit with Kim Jong-un and everything to do with laying the foundation for establishing Vietnam as an alternative to China as an Asian manufacturing hub.
The media has no idea how to report about the stock market. It loves those pictures of traders looking up at a screen with a pained look. They never seem to find pix of those same traders looking overjoyed at a rise in the numbers.
The media loves bad news, and if something isn’t bad, it paints it as bad. When the numbers look good again, they don’t report on it.
They aren’t reporting on the cold spell in the northeast. They don’t ever report on gas prices going down in late Summer and early Fall. When they are forced to report on something good, they say it once and then never again.
Trump’s trade war is necessary. Espionage and IP theft will eventually leave America at the mercy of the PRC. If anything, the President should ban all commerce with China to force the issue despite the hell it would play with the US economy. Yet I see the PRC being in the superior position because the are a dictatorship by committee and simply can out last Trump, be it one year or five.
Trump needs to use the bully pulpit to calm investors nerves!! He needs to address the American people this evening and speak of the dirty tricks the Chinese have inflicted on our economy!! Three years in the WH and he has yet to do a one on one with Americans!! And rallies don’t count because only Fox carries them...he needs a televised mini SOTU type evening speech forcing ALL main stations to carry it!
So China imposed a tariff on the last 60 billion tranche of paltry amount of stuff we export to them.That was their last bullet. Now Trump can bring out the howitzers and start talking about quickly taxing the rest of the trade with China, another 350 billion and start hinting at not staying at 25% tariff but moving it to 45%.The last nail in their thieving coffin. But at the same time you know his commerce department has been coordinating talking to our multi nationals there like Cook of Apple and Boeing and GM and Ford about how much time it will take to get their plants out of China and move their supply lines
Welcome back to the Third World, China!
China is headed for a HIGH VELOCITY CRASH!
The Chinese economy will look like a bug against a windshield. And, a lot of people will be hurt. Don’t have too much exposure to the Chinese economy.
See price of BITCOIN climb as desperate money tries to leave China.
This sell off is fake. $50B cannot affect the market this much. It is the globalists playing us. They will start the buy back when all the idiots have sold off over NOTHING but globalist gloom and doom hype.
“They are foolish to try.... If they want an protracted situation, they will LOSE big time....”
No they won’t. This move will drive US stocks down and with it the perception that the economy is going south. Exactly the one issue that the Democrats can exploit.
China will just return to a state of people starving as it is part of the “greater good.”
This is temporary blip. A fake response inflamed by the globalists.
The USA is the USA’s manufacturing hub of the future.
Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.