The U.S.-China trade war caused a large cut for the stocks last Monday. Such a move is China’s latest clap-back at U.S. President Donald Trump’s current steps and actions.
Subsequently, the acute fall in stocks reflects in the quick 767.27-point plunge for the Dow Jones Industrial Average. The figure is 2.9% of the total, close at the 25,717.74 value. Besides, the Nasdaq Composite fell short, dropping 3.5%. The S&P also backtracked, falling to 2,844.74 by 3%.
Simply put, this is the worst exponential drop for the totality of the indexes in 2019. Roughly, the S&P 500 hit the lowest low last month at 6% below its set record.
The losing streak of Nasdaq continues to tread on with a six straight losing battle. A losing streak for S&P also coincided for six days.
Donald Trump, as a response, sent in a new round of tariffs on the Chinese goods and Federal Reserve as an aggressive rebate. Such a move is made to backstop economic mishaps.
Stocks of American companies faced a sharp trickle down. Apple lost 5.2%, while Macy’s and FedEx dropped 3.1% and 4% respectively. Best Buy also fell short at 3.5% decrease, and Caterpillar dropped at 2.3%, among others.
The backlash at China can be seen in its loss in yuan currency exchange. It fell at its lowest level against the U.S. dollar last Monday. However, China stills continue to suspend and retaliate by putting a halt on importing agricultural products from America, which causes more harm than good.
The two countries continue their push and pull as the trade war intensifies.