Dow Drops 605 Points Because the Trade War Isn't the Half of it

Illustration by Michael Haddad

Pressure Pushing Down on Me. Markets were closed Wednesday for a national day of mourning, but investors were thrown back into the maelstrom on Thursday, as stocks continued their Tuesday losses. All three indexes were deep in the red, hurt by an array of worries. In today’s Intraday Update, we…

…explain why Huawei Technologies is haunting the market; …talk Treasuries once more; …see what’s boosting Barrick Gold .

It’s the Terror of Knowing What the World Is About

It’s another bloody day for stocks, with problems popping up everywhere: Markets are grappling with another tech rout, slumping oil prices, narrowing Treasury yields, and the arrest of the chief financial officer of Chinese smartphone maker Huawei in Canada, at the U.S.’s request.

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The Dow Jones Industrial Average is down 605 points, or 2.4%, while the S&P 500 is 2.1% lower and the Nasdaq Composite is off 1.3%.

Huawei’s Meng Wanzhou was arrested for allegedly breaching Iran sanctions, and China has criticized both countries for detaining her. Of course, the bigger worry is what this means for tariffs. The last thing investors want to see is another point of contention between the U.S. and China, which are still far from a trade agreement.

“The timing of the arrest is key here,” writes London Capital Group’s Jasper Lawler. Markets were already beset by nerves about slowing economic growth and an inverted U.S. yield curve, and the euphoria from the G20 summit didn’t last. Thus,

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