It’s been a rollercoaster ride for stocks over the past week as trade war talks intensified between the U.S. and China. It’s unclear how quickly a resolution can be reached between the two nations, leaving many worried about a significant global economic downturn.
U.S.-China Trade War Deepens | USMR Market Insights- Video Transcription
In the past week, President Trump and his administration chose to increase tariffs on Chinese imports as punishment for what Trump said was Beijing's attempt to renegotiate the trade deal. China then spoke out saying that they too will raise tariffs as retaliation and they hiked tariffs on 60 billion dollars’ worth of imports from the United States. Worries over the escalation of the trade spat with China just aren't going away. U.S. stocks opened sharply lower on Monday this week with the S&P 500 falling two percent and the Nasdaq dropping two point seven percent. The Dow was also down more than 590 points just at the open. On Sunday May 5th, Trump threatened further tariffs on Chinese imports and his administration followed through last Friday. That's when he raised tariffs to twenty percent from ten percent on two hundred billion dollars’ worth of Chinese imports. The additional tariffs are not expected to affect goods already in transit which buys a new negotiation window for negotiators.
Stocks recovered on Friday after Trump and the Treasury secretary Steve Mnuchin called last week's talks with Chinese negotiators constructive. Still, the Dow ended the week down more than two point one percent making the worst week since March. But, it isn't just the U.S. that's suffering from all of this. European stocks were lower across the board. Asian markets closed lower with the Shanghai Composite ending Monday trading down one point two percent. So, to get more information on this topic you can get U.S. money Reserve's latest report ‘in debt and out of time'. It has a lot of really good detailed information as to how we got into the situation to begin with but more importantly it can show you why we are where we are today and what can happen should our current situation lead to a default or a recession. So to get your copy click on the link below or call the number on your screen. If you like the information today, please like and share this video. And if you're watching us from YouTube please subscribe so that you don't miss a single episode. I'm U.S. money reserve's Patrick Brunson and as always thank you for watching market insights.