Wall St. slumped on geopolitical tension, recession fear


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Wall St. slumped on geopolitical tension, recession fear

On Monday, the 12th of August 2019, all three key indexes of Wall St. went through a broad-based sell-off as growing grudges of geo-political angsts alongside a protracted Sino-US trade war stoking recession risks had spooked investors and catalyzed a bond market rally.

In point of fact, Monday’s (August 12th) sharp downturn in US stock indexes was almost entirely prodded by an escalated Sino-US trade-spat which had every potentiality to turn into a full-blown war over tariffs in a neat-term outlook, meanwhile a landslide victory of Argentina’s populist opposition stoked worries of spurring anti-capitalist financial system across South America, which in effect weighed on investors’ sentiments in the Wall Street.

Adding that there had been an extensive flight-to-safety response on Monday’s (August 12th) market which eventually led to an aggressive rally of bonds, a director of trading at Performance Trust Capital Partners in Chicago, Brian Battle said, “The stock market’s selling off because the bond market is rallying like crazy.

There’s a flight to safety and there are multiple silos of political uncertainty. People are starting to give up and buy treasuries to wait it out. Gold is a beneficiary too. ” Quoting statistics, on Monday’s Wall St.

closure, Dow shed 1.48 percent to 25,897.71, S&P 500 lost 1.22 percent to 2,883.09, while Nasdaq was nudged 1.20 percent lower to round off the day at 7,863.41