The US stock markets have suffered another blow today, as the Dow dropped by 500 points amidst increasing concerns regarding the Wall Street, trade fights amongst the US and other trading partners and increasing interest rates. There is also fear of continuous weakness in Facebook shares as well as other technology stocks.
Amongst the stocks that suffered a blow in the United States was the Dow Jones industrial average, which dropped by 1 percent or in points, 250 points. Moreover, the Nasdaq dropped by 0.9 percent and the Standard & Poor 500 stock index dropped by 1 percent.
This was another day for the US stock market when the stocks and indexes suffered a blow. All major indexes reported a decline. Moreover, though the decline was minimal in some cases, it was still note worthy.
The Wall Street got a confirmation from Trump during the late hours of the afternoon that the United States is aiming for tariffs of as much as $60 billion for the Chinese imports. The news and particularly this move have increased the fears of a possible global trade war, as well as retaliation from Beijing. Moreover, the President, who referred to China as a ‘friend’, also did not mention that which Chinese manufactured goods will be subjected to a US import tax.
Another big concern was a trade war and money managers remained concerned because of it. A survey that was revealed by the Bank Of America Merrill Lynch revealed that the indexes would continue to suffer because the trade war concerns are looming.
The Wall Street also had eyes on the shares of Facebook, a social media giant, focusing on the interviews of CEO Mark Zuckerberg and the fact that Facebook is dealing with a data privacy controversy. Facebook’s shares, too, have suffered a blow and are down by at least 12 percent from their Feb 1st high. On Thursday, they were at least 3 percent lower.
There are uncertainties looming the US stock market, as there is too much unpredictable behavior going on. According to a market analyst at OANDA, Craig Erlam, the biggest threat, as of now, is the retaliation and where it will all end.