DJIA heavily in the red after Trump says U.S. companies must look for ‘alternative to China’

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  • US stocks are in a state of panic over trade wars.
  • The market expects more tariff announcements today.

US Stocks are in the red while the drum beats of the trade wars continue to play havoc on investor sentiment. First of all, President Donald Trump has been saying that he’s ordering American companies to start looking for “an alternative to China,” after Beijing finally punched back with tariffs on imports of U.S. goods.

We are trading volatile markets to the week with headlines from the Jackson Hole streaming through whereby Federal Reserve chairman Powell has delivered comforting words to investors whereby he has indicated that the door is indeed wide open for another interest rate cut in September.

The mixed backdrop for investors has subsequently resulted in the Dow Jones Industrial Average DJIA, -2.26%  falling 520 points, or 2%, to 25,732. The S&P 500 index fell dropped 59 points to 2,863 in a 2% decline while the Nasdaq Composite index lost 195 points, or 2.4%, to 7,796.

“The Dow is down 573 points perhaps on the news that Representative Seth Moulton, whoever that may be, has dropped out of the 2020 Presidential Race!” –

Trump

We are waiting for Trump to say more and the market expects more tariff announcements.

DJIA levels

 

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