On Friday, the 2nd of August, all three key indexes of Wall Street extended their losing streak, posting sharp downturn for three straight sessions in a row, while benchmark S&P 500 alongside Nasdaq went through their worst weekly plunges since December 2018, as investors started off murmuring around the tea-table about a possible recession risk lurking over the horizon.
In point of fact, a number of rancorous rumpuses had dampened investors’ optimism this week, which had witnessed a hawkish rate-cut from Federal Reserve alongside a new tariff hike on $300 billion worth of Chinese imports.
Despite Trump’s latest China tariff had heightened possibilities of a Fed rate cut as early as by September this year, financial markets across the world had yet to stomach Thursday’s (August 1st) shock and a disappointing 25-basis point rate cut by Federal Reserve, while expressing withering uncertainties on growth outlook, a managing partner at the Keator Group in Lenox, Massachusetts, Maatthew Keator said, “The irony is that these trade policies are creating an environment for the Fed to lend itself to further rate cuts.
But Trump is tweeting about hawkish trade policies and the market is going down because of it”. Quoting statistics, on Friday’s (August 2nd) market wind down, Dow Jones Industrial Average shed 0.37 percent to 26,485.01, benchmark Standard & Poor 500 shrugged off 0.73 percent to 2,932.05, while Nasdaq Composite was nudged 1.32 percent lower to 8,004.07.