Posted on 05/31/2019 1:33:05 PM PDT by reaganaut1
Stocks and bond yields around the world fell Friday after President Trump threatened to impose escalating tariffs on Mexico, capping a brutal month for markets as rising trade tensions roiled investor confidence.
The threat pushed stock markets down as investors feared applying tariffs on Mexican products could hurt corporate earnings, increase prices for U.S. consumers and crimp economic growth. The Dow Jones Industrial Average fell more than 300 points, while the Nasdaq Composite Index and S&P 500 both fell more than 1%.
As investors sold stocks, they moved to government bonds, gold and the Japanese yen, all assets typically perceived as safer. The Mexican peso fell 2.5% against the dollar as investors reacted to concerns about the country’s ability to withstand tariffs from its largest trading partner.
“This will impact consumer spending. This will impact corporate earnings. This is utilizing a trade policy tool to enforce policy outside of trade, and that sets a concerning precedent and leaves investors wondering how else tariffs could possibly be used,” said Kristina Hooper, chief global market strategist at Invesco. “Markets were already freaking out over existing tariffs. We’ve just thrown gas on the fire.”
Stocks’ losses accelerated in the final hour of trading. As of 4 p.m. ET, the Dow lost 355 points, or 1.4%, while the S&P 500 also fell 1.3% and the Nasdaq fell 1.5%, erasing Thursday’s slight gains for the indexes. The Dow industrials suffered their sixth consecutive week of losses, the longest losing streak since 2011, ended May down more than 6%, their biggest one-month decline since December.
The yield on 10-year U.S. Treasurys declined to 2.149% from 2.227% on Thursday, hitting a fresh 20-month low. Yields on German 10-year bunds fell to minus 0.208%, matching an all-time low reached in July 2016.
(Excerpt) Read more at wsj.com ...
The Dow Jones Industrial Average fell more than 300 points, ...
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That’s a story about nothing.
Much less impact than I would have thought.
So who are you backing to replace Trump in 2020?
Free Traitor alert!!!
Not sure about you, but I am backing the Old Trump, hopefully he can manage to get that monkey off his back and be himself more.
and you never post when the market is up. hmm.
Investors invest. They aren’t going to sit very long with the money tucked under their mattresses.
All of these scaredy cat investors have to do is back Trump and things will be great. I wonder how far the market would drop if there was a typhoid fever outbreak?
I have backed President Trump since he sided with the citizens and the rule of law.
Nobody else would.
The poster I asked wants somebody else.
Sadly, the world is more concerned with how much I made/lost today than the long-term health of the country. President Trump is looking at a much bigger picture.
I lost some dough on the stock market but what’s money? My money manager just texted this morning and my response was “so? am i gonna be homeless by monday?”
The poster I asked wants somebody else.?????
I try to remind people that a long time ago 57 Men JUST LIKE Donald Trump decided they had, had enough and started a Revolution!!!
Ah, some people get nervous kinda easy or maybe they really dont like the idea of tariffs but I am sure everyone here is voting for Trump in 2020
Or they’re on the wrong board. :)
Hard to survive mods here long if you really dislike Trump.
You’re gonna show it sooner or later in flying colors. :)
This is my thought. Plus, taxes are low and energy is abundant and cheap.
So, if you are worried you should contact your democrat representative. If the passed legislation to ease the border problem President Trump wouldn’t have to impose tarrifs. He has to use his only tool because congress refuses to do their job.
Trump’s action today must really be a success. I think EVERY propaganda story on Fox News Propaganda Radio was an attempt to spin Trump as a moron and this action as destructive to America and everyone in it.
Market crash
Savings accounts and CDs pay nothing. Neither do bonds.
Getting out of stocks now is market timing, and people really get burned doing that. Buy and hold mutual funds.
The Federal Reserve is the dark cloud over the economy and the stock market.
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