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 ...
Time to raise the tariffs on all Walmart imported goods and give incentives to start manufacturing plants in the USA.
Hillary was on the Board of Directors of Walmart for many years and they and China funded Bill’s presidential run. Remember Charlie Trie and the 30 Chinese Nationals that donated lots of cash to Bill and were never arrested?
Several of my clients who owned manufacturing plants were guided by Walmart to switch manufacturing from USA to China. China even offered to purchase the equipment in the USA plant and ship it to China.
Hardly... China cannot sustain the economic downturn that a protracted trade war will cause... and while it won’t be painless for the US... Capital Flight from China to other emerging markets will quite quickly replace their supply chain.
60% of the Chinese Economy are goods sold to the US... And if you think they can take that hit without political upheaval, you are only fooling yourself.
I look for pork and bacon prices to subside now that the gooks are scarfing it all up. I mean how long was $7.00 bacon going to last?
We’ve been in a protracted trade war for 30 years.
“China will just return to a state of people starving as it is part of the “greater good.””
China is on the verge of an internal revolution.
Hahahaha.. no we haven’t.. China has been... the US has been giving away the store.
Fixed it.
China purchased one of our largest pork producers in the USA, Smithfield.
Stay the course President Trump.
We are with you, even if a lawnmower goes up $100 per unit.
Use the tariff money to make our producers whole, especially AG. Don’t listen to the Free Traitors.
Maybe you are right. If one side(US) is taking in the short hairs and getting pummeled and not fighting back against the aggressor(PRC) is it a war?
They are counting on Congressional Republicans to bail them out.
And they might.
FAKENEWS : Dow drops nearly 500 points after China retaliates with tariff hikes.
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I look for pork prices to plummet. Was the current inflated price of bacon sustainable?
“be it one year or five”
Study for a moment on what happens to China when their economy completely collapses. 10s of millions of Chinese middle class unemployed and destitute. The poor starving.
It’s the stuff of revolution.
Dow drops nearly 500 points after Doris Day dies at 97 and the world was stunned to learn that Rock Hudson was a closeted homosexual.
China imports a LOT of pork.. Their retaliation traditionally with raising import tariffs on pork is limited in effect and with Swine Flu decimating its own stocks just makes pork that more scarce and expensive in China...
China cannot survive a protracted trade war... their economy will collapse in short order. 60% of their income comes from trade with the US... they can’t make that up.. and if they insist on not dealing, the western investment capital will divert to other emerging markets and replace them in the US supply chain. Not something that happens overnight, but doesn’t take long either.. 5 years is a lifetime
Exactly, its one thing when you have a poor country that keeps remaining poor, its another when you suddenly destroy the middle class and they start watching their children starving...
Once they know better, they won’t quietly accept base existence...
This is what causes revolutions.
There are so many alternatives in Asia and Indonesia to China, inventory volatility will be but a blip on the import radar.
Plus the President is pushing heavily towards Americans making things again.
The future is AI and robotics.
https://video.foxnews.com/v/6002322252001/#sp=show-clips
They need to learn to code.
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