It was another rough day for stocks.
Stocks opened lower after more trade war news. We also had the September Producer Price Index (PPI) data showing the biggest drop in 8 months (down -0.3% vs. a 0.1% forecast).
But today’s uncertainty and sell-off was really all about trade with China.
Here’s what’s moving the markets:
-
Yesterday, the U.S. put 28 new Chinese firms on its blacklist.
-
Tariffs are set to increase from 25% to 30% on Chinese goods in 7 days. President Trump says the increase will go into effect if there is no progress during talks.
-
Today the White House placed travel bans on Chinese officials tied to alleged human rights abuses.
-
China said that it “strongly urges” the U.S. to stop accusing the country of human rights violations and to remove sanctions.
In the afternoon there was a small rally after Fed Chair Jerome Powell announced that the Fed will be expanding its balance sheet “soon.”
But another push lower in late trading left stocks at session lows.
Here’s where the major indices ended the day:
-
The SP finished with a 1.6% loss. Down 46 points, the S&P ended at 2,893.
-
The DOW ended lower by 1.2%. Dropping 314 points, the DOW closed at 26,164.
-
The NASDAQ was down 1.7%. With a 133 point loss, the NASDAQ finished at 7,824.
Crude Oil (CL) opened below the $52 mark and rallied. But oil couldn’t quite make it into positive territory today. With a 0.2% loss, CL ended at $52.66 a barrel.
In earnings news, Domino’s Pizza (DPZ) was a loser in early trading after an earnings miss. But the stock reversed its direction and ended with a 4.8% gain in spite of the news.
Trading Futures, options on futures and retail off-exchange foreign currency transactions involves substantial risk of loss and is not suitable for all investors. You should carefully consider whether trading is suitable for you in light of your circumstances, knowledge, and financial resources. You may lose all or more of your initial investment. The lower the day trade margin, the higher the leverage and riskier the trade. Leverage can work for you as well as against you; it magnifies gains as well as losses. Past performance is not necessarily indicative of future results.
Recommended Content
Editors’ Picks
AUD/USD holds above 0.6500 in thin trading
The Australian Dollar managed to recover ground against its American rival after AUD/USD fell to 0.6484. The upbeat tone of Wall Street underpinned the Aussie despite broad US Dollar strength and tepid Australian data.
EUR/USD comfortable below 1.0800 lower lows at sight
The EUR/USD pair lost ground on Thursday and settled near a fresh March low of 1.0774. Strong US data and hawkish Fed speakers comments lead the way ahead of the release of the US PCE Price Index on Friday.
Gold price finishes Thursday’s session set to reach new all-time highs
Gold price rallied during the North American session on Thursday and hit a new all-time high of $2,225 in the mid-North American session. Precious metal prices are trending higher even though US Treasury yields are advancing, underpinning the Greenback.
Bitcoin price extends retreat from $69K as old whales shift their holdings to new whales
Bitcoin price continues to move further away from the $69,000 threshold, gaining ground as BTC bulls hope for a retest of the $73,777 peak. This is because of the general assumption that clearing this blockade would set the tone for a reach higher, marking a new all-time high.
Bears have been standing before a steamroller so far this year
Despite a pushback on rate cuts from Christopher Waller, and what was supposed to be cautious trading sentiment ahead of critical US inflation data released later on Friday, the S&P 500 rose on Thursday, marking its best first-quarter performance in five years.