As worries about the tension between the USA and China intensify, The Dow plunged once again on Friday, with sharp losses that went as high as 710 points.
The S&P 500 lost 22.96 points, or 0.862237 per cent, to 2,639.88. He stressed that the USA tariffs on China were simply proposals, still to be vetted by trade officials and open to public comment.
US President Trump said he is considering tariffs on an additional 100 billion dollars-worth of Chinese imports, and China has warned that it is ready to retaliate. Oil prices fell nearly 5 per cent this week as investors wondered if an increase in trade tensions will reduce demand for oil by slowing down the global economy.
"Anything that's twice as large as the last number is going to elicit a response, and I think that we're just going to be going on this hayride for a while until they get themselves around the table and start talking turkey.at some point the market's going to get fed up with it".
"The global trade war is moving from myth to reality", Peter Rosenstreich of Swissquote Bank, an online bank in Switzerland, told USA TODAY in an email. The Nasdaq composite slid 135 points, or 1.9 percent, to 6,940. That came with the US considering duties on an additional $100 billion in goods imported from China. Some people said this dip and all the recent volatility doesn't deter them from investing in the stock market. The US treasury secretary, Steve Mnuchin, appearing on CNBC, said he was "cautiously optimistic" the US would reach a resolution with China.
White House officials, including top economic adviser Larry Kudlow, have sought to ease business leaders' fears of a trade war that would slow down the economy. But he also stressed there was an open line of communication, saying: "This is a moderate, tempered approach that we are taking".
Despite the short-term market turbulence, investment pros are still hopeful that a full-fledged trade war will not break out.
Kudlow repeated United States concern over technology transfers.