Wall Street in red for third consecutive day as trade worries loom


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Wall Street in red for third consecutive day as trade worries loom

On Friday, the 8th of February, the Wall Street fell for the third straight day in a row, as worries are looming large over getting a trade deal done before the trade truce deadline scheduled on March 1st, GMT. 05.01. Apart from that, a havoc-scale global slowdown has been darkening the market atmosphere and clouds of economic shrinkage appear at the horizon of multiple economic superpowers, including China, Germany, Italy & Britain.

Besides, a pause to Fed’s three-year-long hawkish cycle of interest rate hiking had been stopped last month, which is also considered to be a sign of shrinkage in the US economy. Among all of the nerve-wracking fear-factors, the geopolitical tensions over US-China trade talk seems to have heavier impact, as the US stocks started to fall two days ago, after US president Donald Trump announced that he would not be meeting Chinese President Xi Jinping before the trade truce deadline, instead he would be sending the US Treasury’s Mnuchin to perform the biddings on behalf of him.

Nonetheless, when this report is being prepared, the 8th of February, GMT. 20.00, the trade-sensitive Dow Jones Industrial Average was down by 0.80 percent to 24,969.04 and the Standard & Poor 500 was down by 0.58 percent to 2,690, while the Nasdaq Composite curbed 0.56 percent of its previous gains, residing at 7,247.48.

Referring to many unsolved issues over US soil including the US-China tariff talk, a portfolio manager at the Gradient Investment in the Arden Hills, Minnesota, Jeremy Bryan said, “After the strong rally in January, people are just taking a little bit off of that and assessing that we haven’t solved a lot of these issues that are out there in the markets right now. ”