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Stocks - Trump's China Tariff Threat Slams Wall Street

Published 08/01/2019, 03:05 PM
Updated 08/01/2019, 05:38 PM
© Reuters.

Investing.com - A robust rebound rally for U.S. stocks abruptly fell apart Thursday after President Donald Trump threatened to impose a 10% tariff on $300 billion worth of Chinese goods by September.

The president said the threat resulted from a failure of China to buy more agricultural goods from the United States. The tariff threat was also a reflection of Trump Administration's frustration that China doesn't feel the urgency to cut a trade deal. Talks resumed this week after falling apart in May. No deal was reached, however.

The S&P 500 and the Dow Jones industrials were both off about 0.9%. The Nasdaq Composite index dropped 0.8%.

But that's only part of the picture. The S&P 500's swing from its high Thursday to current levels was about 60 points. The Dow had been up as many as 311 points before plunging nearly 550 points. The Nasdaq's swing was 135 points.

Microsoft (NASDAQ:MSFT) was still a leader in the Dow, up 1.4%. Caterpillar (NYSE:CAT) was down 3.6%. Wynn Resorts (NASDAQ:WYNN), which has huge operations in Macau, was down more than 6%.

Oil prices were off more than 7%, and the 10-Year Treasury yield fell to 1.89% from 2.021% on Wednesday.

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