On Tuesday, the 7th of May 2019, the Wall St. slid heavily with all of its three key indexes losing more than 1.5 percent, as an exacerbation of Sino-US trade tension had renewed global growth fears and kept large buyers at bay.
Although, Beijing had agreed to send their trade negotiators led by Chinese Premier Liu He for the next round of trade talk scheduled to take place between Thursday and Friday (May 9th-May 10th), US equity markets alongside global stocks had reacted mercilessly with a red-hot rod of iron melting down the global equities grievously.
In point of fact, in the wake of a latest turn of events on US-China tariff talk, the export-oriented Dow Jones Industrial had posted its second-biggest intra-day percentage drop this year, while Nasdaq and S&P 500 had scored their third-largest daily percentage plunge.
Tuesday’s (May 7th) US indices were mostly muddled by comments from US Trade Representative, Lighthizer and Treasury Secretary, Mnuchin, who had been quoted saying later on Monday (May 6th), that China had allegedly derailed from their commitments and a tariff hike of 25 percent for $200 billion worth of Chinese imports would take place by next Friday (May 10th), if the recent leg of trade failed to hammer out a decipherable trade deal.
On Tuesday’s (May 7th) market closure, the Dow fell by 1.79 percent to 25,965.09, while S&P 500 shed 1.65 percent to 2,884.05, and the Nasdaq Composite was plunged by 1.96 percent to 7,963.76. In point of fact, market volatility had spiked to its three-month peak on Tuesday (May 7th), as traders’ optimism got suddenly compromised following Trump’s tariff hike on Sunday (May 5th), which came out of the blue and stoned traders across all over the world.