US stocks slammed on escalating US-China trade tensions
|Major US equity indices opened sharply lower on Wednesday, weighed down by concerns over the prospect of a trade war between China and the US.
Fears of a full-blown trade war revived on Wednesday after China imposed tariffs on 106 American products. The move was seen as retaliation for the Trump administration's plan to hit with 25% tariffs on the $50 billion of Chinese imports.
Against the backdrop of escalating US-China trade tensions, the ongoing slump in technology stocks, led by the recent Facebook's data scandal, further dented investors' confidence and collaborated to the slump during the opening hour of trade on Wednesday.
On the economic data front, the latest ADP report showed US private sector employment increased by 241K in March, much better than 205K expected, but did little to provide any respite. The key focus, however, would be on Friday's closely watched official monthly jobs report, popularly known as NFP.
The selling pressure seems to have abated, at least for the time being, with growing threat to global growth/corporate earnings might lower equity valuations and continue exerting downward pressure on the markets in the near-term.
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