NYSE trader on fluctuating markets: 'Uncertainty is what we have'
After U.S. stocks posted their single worst session of 2019 on Monday, the markets have fluctuated heavily, recovering slightly on Tuesday, only to fall hard in early Wednesday trading.
Monday’s tumble came after China allowed the value of its yuan to weaken to 7 per dollar, following President Trump’s announcement that the U.S. would be implementing 10% tariffs on the remaining $300 billion worth of Chinese goods, effective Sept. 1.
Since Monday, markets have been irregular following more trade tensions with China.
New York Stock Exchange trader Wayne Carone of Quattro M. Securities told Yahoo Finance’s The First Trade that these choppy markets are a result of uncertainty.
“Uncertainty is what we have,” Carone said. “You have China right now, where we're really concerned with this trade deal. Once this trade deal goes through, it definitely will calm the market down. But this trade deal, people have to understand something. It was a terrible thing that we did in the beginning. Because if you notice, China brings their products here, they sell it for half the price, or a quarter of the price, of what they're selling it there, and it's really hurting our economy and people don't realize it.”
Today, Yahoo Finance’s Krystal Hu reported that President Trump’s tariffs have cost U.S. businesses $3.4 billion in June alone — 74% higher compared to a year ago.
Some analysts aren’t optimistic about an imminent trade deal, though. Goldman Sachs recently said it doesn’t foresee a trade deal taking shape before the 2020 presidential election. And analysts at Credit Suisse issued a note to clients this week, saying the yuan’s break of the 7 level “suggests a lower probability of a timely trade deal.”
Once a trade deal is made, Carone said, “I definitely believe it will be calmer.”
Chelsea Lombardo is a production assistant for Yahoo Finance. You can find more of her work here.
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