On Tuesday, the 8th of October 2019, a basket of Wall St. stock indexes witnessed an en masse sell-off pressure, while latest escalation of Sino-US trade war involving a slew of cataclysmic punitive measures on Chinese firms, state governments and intelligences had added to investors’ worries.
In point of fact, Tuesday’s (October 8th) Wall St. went through steep downside spiral with all of its key indexes hovering over a sea of Nile, as United States’ latest policy change to impose visa restrictions for Chinese officials had undermined a much-dovish speech of Fed Chair Jerome Powell, where Powell had reiterated his stance to act accordingly to sustain a record-long expansion of US economy and suggested an openness to further rate-cut.
In point of fact, stocks gained footing after Fed’s dovish stance on monetary policy amid a slowing US economy, but pared losses to fall further during late US trading hours after US Government had inclined a visa restriction for Chinese government officials alongside the Communist Party officials, blamed for the so-called abuse and detention of an ethnic Muslim minorities group, residing in the Chinese province of Xinjiang.
Meanwhile, addressing to a number of negative headlines casting glooms over a Minister-level Sino-US trade talk, as early as next Thursday (October 9th), a chief market strategist at SunTrust Advisory Services in Atlanta, Keith Lerner said on Tuesday’s (October 8th) market wrap-up, “The market was down because the headlines were negative coming into the U.S.-China negotiations.
With Powell not changing the narrative, it makes sense that on further signs of deterioration in trade that the market would sell off. ” Quoting statistics, on Tuesday’s (October 8th) Wall St. closure, trade sensitive Dow fell by 1.19 per cent to settle down the day at 26,164.04 and S&P 500 index was plunged by 1.56 per cent to wrap up the day at 2,893.06, while leading the falls of Tuesday’s (October 7th) Wall St., Nasdaq was nudged 1.67 per cent lower to wind down the day at 7,823.78.