I was out doing photography in the Moab, Utah area yesterday afternoon then for Milky Way photography in the evening.
I missed the rally yesterday afternoon when stocks pared two-thirds of their Trump-inspired losses. Today, the equity markets had second thoughts.
Stocks Resume Slide
The Wall Street Journal reports Stocks Extend Decline as Trade Tensions Buffet Markets
U.S. stocks fell sharply Tuesday, their latest volatile reaction to Washington doubling down on its threats to increase tariffs on Chinese goods, heightening trade tensions.
The threats hit shares of trade-exposed companies, and concerns that new tariffs could weaken demand for oil sent energy prices and companies lower.
The Dow Jones Industrial Average slid 419 points, or 1.6%, to 26015 while the S&P 500 fell 1.6% and the tech-heavy Nasdaq Composite lost 1.7%.
China reiterated today that it would not back out of trade talks. The markets did not care.
For a discussion of the pair of Tweets from Trump that coincides with the volatility, please see:
- Trump to Hike Tariff Rate on $200 Billion in Chinese Goods: Two Tweets Two Lies
- Trump's Trade Tactics Rattle Markets, China Ponders Canceling Talks
I still expect a deal, with much fanfare. It will not do much of anything.
US budget deficits and the US dollar reserve currency status suggest it will be a struggle to reduce trade imbalances no matter what China claims it will do.
Mike "Mish" Shedlock