Markets Slide Amid New Tariffs on Chinese Products
This article was originally published on ETFTrends.com.
The Dow Jones Industrial Average slid over 150 points to start Wednesday morning's trading session amid new tariffs on Chinese products announced by U.S. President Donald Trump's administration.
The S&P 500 slipped 0.43 percent and the NASDAQ fell 0.16 percent. The continuing narrative of new tariffs and negative gains continue to spin the markets, confounding market experts.
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"At this point I'm hoping for more science in searching for a deal and less art," said Peter Boockvar, chief investment officer at Bleakley Financial Group. "China seems to have no interest in bending ... and they will retaliate."
The new tariffs came just a couple of hours after Tuesday's trading session ended, which consists of 10 percent duties on $200 billion worth of Chinese goods. The move comes after both the U.S. and China hit each other with $34 billion worth of tariffs.
This week, the markets will likely be in a tug-of-war battle between tariff news and second quarter earnings announcements. Market analysts are predicting more strong corporate earnings announcements with companies like Wells Fargo, JPMorgan Chase & Co, Citigroup, and Delta Airlines set to publish their earnings.
How the markets react to the mix of tariff news and earnings will set the tone for the next trading sessions to come.
“Despite trade headlines, S&P 500 companies should deliver robust earnings on above-trend revenue growth and sharply higher margins,” said Dubravko Lakos-Bujas, head of U.S. equity strategy at J.P. Morgan. “While weaker overseas growth, stronger USD, and trade risks warrant some caution, consensus is likely too conservative considering rising disposable income (i.e., tax savings and expanding labor market) and lower household expenses (e.g., declining cost of goods/services including utilities).”
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