Wall St. sours ahead of Sino-US trade talk, braces for a breakdown

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Wall St. sours ahead of Sino-US trade talk, braces for a breakdown

On Thursday, the 9th of May 2019, the Wall St. had opened significantly lower ahead of make-or-break trade negotiations between United States and China, although the indexes recovered slightly during the midday US trading hours, after Trump had announced that he had received a sweet letter from Chinese President Xi Jinping.

As beforementioned, all three indexes of Wall Street had opened more than 1 percent lower over concerns of a tariff hike on Chinese goods just hours away, however, later the Wall St. indexes had recovered some of its earlier losses after Trump’s announcement that he had received a letter from the Chinese President, urging US to resolve their deep differences and to hammer out a trade deal while averting the tariff hike.

Nonetheless, sources familiar with the trade talk had been quoted saying later during late-US trading hours that Beijing had sent a text draft of the trade deal with much of the proposals had been riddled and backtracked, while White House officials had said ahead of the critical trade negotiation, which would likely to end up with an orderly breakdown, that they had already taken precautionary measures for Wall Street impacts over a broken US-China trade talk.

Followed by the reveal of upcoming White House measures ahead of a possible tariff hike tomorrow (May 10th), Wall St. had managed to curb some of its decline, while Dow Jones Industrial had wrapped up the day 0.54 percent lower and S&P alongside Nasdaq had posted a plunge of 0.30 and 0.41 percent respectively.