On Tuesday, the 28th of May 2019, all three key indexes of Wall Street had witnessed a whiplash, after failing to carry on initial positive momentum, while a protracted trade war with China had again kept risk appetites on check.
On Monday (May 27th), further rattling China’s cage, US President Donald Trump had been quoted saying that he had not yet been prepared to make a trade deal with Chine, although a deal could be reached later, which had exasperated trade worries and heightened risks that an already escalated Sino-US trade spat could lead to a global-scale economic slowdown.
Nonetheless, adding that the market had been holding on despite Trump’s latest trumpet over trade spat, a senior market strategist at LPL Financials in Charlotte, North Carolina, Ryan Detrick said, “The market holds up well, but then the weak hands take over late in the day.
Pick a worry and it continues to grow and manifest, whether it be trade or looking into consumer confidence, thinking maybe those people did the survey before the China stuff hit the fan. Clearly it’s all about trade”.
Despite a record-surge in the consumer confidence which had hit a nearly 18-months high on Tuesday (May 28th), Wall St. had botched to regain early momentum, while S&P shed 0.84 percent to 2,802,39, Dow dwindled 0.93 percent to 25,347.77 and Nasdaq was nudged 0.39 percent lower to 7.607.35 at Tuesday’s (May 28th) market round-out.