Stocks Pare Losses After Shock From Trump's Tweets: Markets Wrap

© Bloomberg. Monitors display stock market information as pedestrians are reflected in a window at the Nasdaq MarketSite in the Times Square area of New York, U.S., on Friday, April 26, 2019. U.S. stocks edged higher on better-than-forecast earnings while Treasury yields fell after data signaled tepid inflation in the first quarter. Photographer: Michael Nagle/Bloomberg

(Bloomberg) — U.S. equities climbed from the lows of the day posted after President Donald Trump’s threat to increase tariffs on Chinese imports called into question the chances of a resolution to the trade war.

The tumbled by the most since March before cutting the loss in half, signaling a potentially volatile week on Wall Street after Trump tweeted a plan to hike tariffs this coming Friday. From JD.com and Skyworks (NASDAQ:) to Apple (NASDAQ:) and Caterpillar (NYSE:), tech companies with China exposure and machinery companies — which are seen as proxies for the trade war — were among the biggest decliners in early trading. The gauge of stock volatility headed for its biggest increase this year.

“All the indications we had were that things were going well, and we had this news that took people by, ‘Woah, hold on, last we saw things were going okay,”’ said Joe “JJ” Kinahan, the chief market strategist at TD Ameritrade. “We get this news, overnight the markets get a little scared. With the markets opening today, I wouldn’t say cooler heads prevail, but you have more places to trade so that’s why you saw the market come back a little bit. We’ll see if this can last.”

Commodities were roiled. Cotton and corn futures slumped, while soybean contracts headed toward their largest drop in about nine months. West Texas Intermediate oil futures declined as much as 3.1 percent before erasing most of the drop as Saudi

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