On Thursday, the 1st of August 2019, all three key indexes of Wall Street had extended their losing streak after experiencing a massive downswing on Wednesday (July 31st) following a “hawkish” Fed rate-cut with no signals of initiating a rate-cut cycle amid severe slowdown risks.
In point of fact, putting Sino-US trade spat back into the spotlight after May’s 25% tariff hike on $200 billion worth of Chinese imports, US President Donald Trump tweeted earlier on Thursday (August 1st) that an additional duty of 10 percent would be inclined over remaining Chinese imports worth of $300 billion.
Trump’s Thursday’s (August 1st) tweet that inflicted grievous wounds on equity alongside commodity markets across the world, came out as a bolt from the blue and stunned money markets across the globe. Besides, following latest round of face-to-face Sino-US trade talk in Shanghai, negotiators of both sides had called their meetings “constructive”.
Expressing concerns that impacts of protracted Sino-US trade rows alongside retaliatory measures might have become tenacious issues to cope up with, a head of chief investment office market strategy for Merrill and Bank of America Private Bank in New York, Joseph Quinlan said, “The biggest issue for investors to realize is that this is systemic and is going to be an ongoing issue between the U.S.
and China. The markets don’t like uncertainty and this is a bolt from the blue in terms of uncertainty. ” Quoting statistics, on Thursday’s (August 1st) market curtain off, Dow Jones Industrial Average shed 1.05 percent to 26,583.42 and Standard & Poor slipped 0.90 percent to 2,953.56 after hovering over 3,000 mark for straight six days in a row, while Nasdaq shrugged off 0.79 percent to wrap up Thursday’s (August 1st) market at 8,111.12.