Donald Trump keeps doing it: making Wall Street worry, at least a bit, with his trade war talk.
The Dow Jones industrial average fell 219 points Wednesday, to 24,700, after the US set additional tariffs on goods coming from China.
But that was the first time in about a week that stocks reacted negatively to Trump’s tariff pronouncements, despite the fact that these taxes on imported goods are going to reduce the amount of business US companies see, lower their profits and cause inflation.
And when foreign countries like China or Canada or the nations in the European Union raise tariffs on American goods being sold in their areas of the world, US companies are going to suffer even more.
So trade wars and tariffs are bad — except that, until Wednesday, the stock market has been acting differently.
Stocks have been rising nicely since the trade war with China began a week ago.
Since then, the stock market, as measured by the admittedly faulty Dow, has climbed: 100 points on Friday, 320 points on Monday and 143 points on Tuesday.
There are other reasons the market could be rising — namely, the traders who aren’t on vacation (and there are lots) decided to push prices higher when sellers were on the beach. (Yes, I’m saying that people can have their way with the market.)
And there are loads of things ahead that could trip the market up — investigations in Washington not the least of them.
And the trade war isn’t the only thing going on right now, that’s for sure.
Last Friday, the Labor Department reported that a good number of new jobs were created in July, even though the unemployment rate rose. That’s good for the stock market, unless you are worried about the economy overheating and