- U.S. stocks were under pressure on Tuesday as traders get set for the next round of trade wars and global growth fears.
There was a risk-off feel following the weaker global outlook report from the International Monetary Fund which lowered the outlook for global economic growth in 2019 to 3.3% from 3.5% projected in January – ( This was the third reduction of growth expectations in six months).
Meanwhile, we are back to trade wars, this time, between the EU and the US whereby the office of the U.S. Trade Representative threatened to levy tariffs on many European goods late Monday in retaliation against European companies’ subsidies for aircraft manufacturer Airbus:
- The Trump administration would wait for World Trade Organization clearance to implement the duties.
- President Donald Trump Tuesday morning tweeted that the EU has taken advantage of the U.S., adding that it would “soon stop!”:
Benchmark performances:
- The S&P 500 was snapping an eight-day winning streak, falling 17.57 points. or 0.6%, to 2,878.20.
- The Dow Jones Industrial Average dropped 190.44 points, or 0.7%, to close at 26,150.58.
- The Nasdaq Composite Index COMP, -0.56%declined 44.61 points, or 0.6%, to 7,909.28.
DJIA levels
From a technical perspective, the DJIA eyes a break here, 19th March highs (26100) to that first bearish target at the 25700s (50-D SMA) ahead of the 200-DMA which is located in the 25200s guarding a break all the way down to 24800 gap area ahead of the 24500s and then 50% of the upside run made at the end of Dec at 24200.
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