Dow Jones Industrial Average Fell as Hong Kong Is a Trade-War Wild Card – Barron's

Illustration by Michael George Haddad

Down, Down, Down. All three U.S. stock indexes ended the day with deep losses. Trade war concerns and additional tariffs still loom. U.S. Treasury yields kept falling. Hong Kong protests intensified and flights were halted at the territory’s airport on Monday. In today’s After the Bell, we…

wonder whether a trade deal is possible before the 2020 election; watch Hong Kong authorities cope with the conflict; and look at China’s latest credit data in July.

A Turbulent Start

Stocks plunged again on Monday after recovering some ground last week. The Dow Jones Industrial Average slumped 391.00 points, or 1.49%, to close at 25,896.44. The S&P 500 lost 35.95 points, or 1.23%, to finish at 2882.7, and the Nasdaq Composite fell 95.73 points, or 1.20%, to close at 7863.41.

The U.S.-China trade war remains at the forefront of investors’ concerns. The Trump administration has threatened to impose 10% tariffs on another $300 billion of Chinese imports, which will cover consumer products ranging from apparel to laptops. China has vowed to fight back, and it doesn’t seem any meaningful progress in the negotiation will be made before the 2020 election.

Bond yields have been under pressure for much of the month, as investors fled to safe-haven assets under worries about the slowing economy and a possible recession. The 10-year Treasury yield fell another 9 basis points to settle at 1.64% on Monday, while the 30-year yield fell 11 basis points to 2.13%. Bond prices move in the opposite direction of yields.

Many are also worried about the escalating tension in Hong Kong. Thousands of demonstrators staged sit-ins at the territory’s international airport on Monday, leaving all

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