Wall St. whipsaws after Trump threatens China with further tariff

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Wall St. whipsaws after Trump threatens China with further tariff

On Monday, the 6th of May 2019, all three major indices of Wall Street had wrapped up the day lower after witnessing a volatile trading session following Trump’s latest Tweet on Monday (May 6th), saying that he would no longer tolerate an escalating trade deficit with China and would hike tariffs on $200 billion of Chinese exports this week.

Besides, the market sentiment had been muzzled further after Trump had added that he would soon be aiming towards more Chinese exports worth of hundreds of billions of dollars. After Sunday’s (May 5th) comment to incline tariff on $200 billion worth of Chinese goods this week, Wall St.

had opened the market mostly lower, however after easing a little bit during the midday trading hours, the US indices kept losing momentum and hit a fresh session low following reveal of a Wall Street Journal report, which said that the Chinese delegates had been planning to abort the latest round of trade talk scheduled to be set off be next Wednesday (May 8th) in the wake of renewed tensions between the first- and second-largest economic superpowers.

In the face of nerve-wracking worries that China might cancel next round of trade talk, S&P 500 had ended the day down by 0.45 percent to 2,932.47 and export-oriented Dow Jones Industrials shed 0.25 percent to 26,438.48, while tech heavy Nasdaq posted a heavy plunge of 0.50 percent following downslope momentum of its Chinese peers in light of Trump’s threat to hike tariff on Chinese exports this week