(Tuesday Market Open) The administration doubled down on threats to China, keeping trade relations front and center and helping build pressure on stocks in pre-market trading. Chipmakers, automakers, and industrial names took the brunt of the blow in the hours before the open and Treasuries climbed as investors appeared nervous about where this trade battle might go next.
The Dow Jones Industrial Average ($DJI), where many major multinational companies reside, fell several hundred points in the pre-market hours. This echoed the trend from Friday and Monday in which the $DJI felt pressure from tariff talk. President Trump is threatening tariffs on an additional $200 billion in Chinese goods on top of the $50 billion he targeted last week. When you think of trade with China, it’s the major multinationals, chipmakers, and automakers that might come to mind as perhaps having the most to lose if trade relations decline further. Meanwhile, some investors seem inclined to seek safety in Treasuries, where 10-year yields fell below 2.9%.
The action this week comes as a reminder that in times of thin market news between earnings seasons, geopolitics can play a major role in sh
A mini-rebound heading into the Friday close didn't carry through into Monday, as trade concerns weigh stocks in early trading Monday.
New U.S. tariffs on China announced today are front and center, while quadruple witching is another factor that might be worth watching.
The Fed raised its benchmark interest rate Tuesday, as expected, and included more hawkish language in a statement indicating a stronger economic outlook.
After AT&T-Time Warner ruling, investor focus today is likely to be on the conclusion of the Federal Open Market Committee meeting and press conference scheduled for this afternoon.
The Trump-Kim summit statement was light on details, leaving Wall Street in wait-and-watch mode.
The week is dominated by central bank meetings, including the Fed. There’s also some inflation data Tuesday and Wednesday, and the U.S. meeting with North Korea also looms large.
Global markets came under pressure Friday as G-7 leaders prepared to meet in Canada amid trade tensions. Meanwhile, back home, concerns surfaced about iPhone demand.
Global markets followed the U.S. with a rally of their own early Thursday. Not much data or earnings news to monitor, so attention could turn toward G7 meeting.
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