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NEW YORK (Reuters) – The main Wall Street indexes fell on Monday after Beijing announced its intention to retaliate with higher prices on US products, raising fears that a new round of restrictive measures will make the US market more expensive. American economy more prone to recession.
The Dow Jones Industrial Average Index fell 560.03 points, or 2.16%, to 25,382.34 points, the S & P 500 lost 61.84 points, or 2.15%, to 2 819.56 points and the Nasdaq Composite lost 222.72 points, or 2.81%, to 7,694.22 points.
COMMENTS:
WILLIE DELWICHE, INVESTMENT STRATEGIST, BAIRD, MILWAUKEE
"I think the sale is a reflection of the fact that the trade talks are taking place in worse conditions than what people were waiting for." If we started the trade talks on Friday afternoon, some people thought the situation was bad. Was not as serious and that there might be other communications.I think the news of the weekend show that there is less commonality than what the People were thinking and the markets now have to consider that in their assumptions.
"Global uncertainty is a big concern, some were hoping the global economy would prevail, but an escalation of trade problems will weigh in. You have a sense of increased optimism and a recovery that has been felt kind of narrow and now you have disappointing news that leaves stocks vulnerable. "
"Bonds have attracted capital inflows and investors have also turned to liquidity to a certain extent, it's the risk reactions we tend to have."
ALEC YOUNG, CHIEF EXECUTIVE OFFICER OF GLOBAL MARKETS RESEARCH, FTSE RUSSELL, NEW YORK
"The recent escalation of trade tensions between the US and China is weighing on stocks, as rising retaliatory tariffs may trigger a large-scale trade war. Investors are increasingly worried that profits in the second half of the year will fade as President Trump threatens to put its 325 billion euros on Chinese imports on consumer products such as iPhones, which would threaten more the US economy.
"After the historic upturn of 2019, valuations are no longer depressed, which prevents equities from reducing the macroeconomic risks that are looming in. The end result of trading being inherently uncertain and difficult to model or predict, investors are selling first and then ask questions.The more exposed to the world, cyclical industries such as technology and industries are the most vulnerable. "
KRISTINA HOOPER, STRATEGY IN THE CHIEF OF THE WORLD MARKET, INVESCO, NEW YORK
"It is clear that the trade talks between the United States and China are causing a lot of nervousness and fears of a serious deterioration of the situation and its repercussions on all markets."
"We also have a fairly important flight to safety in the form of American treasures."
"Investors wanted to believe the best. They hoped the best and wanted to believe the best. They therefore retain all traces of better relations between the United States and China. The characterization of the negotiations last week is as follows: I think the term was "frank and constructive", which many investors have retained. The idea that China even came to the table after the application of tariffs was seen as a positive sign by investors. But the reality is that the Chinese delegation left early. The reality is that, although trade talks are expected to resume in Beijing, no date has been set, which should tell us a lot about the tension in relations. And then of course, this morning, China has finally fought back with its own set of tariffs on US products. So, clearly, this relationship is deteriorating. This is not what investors hoped would be Friday. "
(Compiled by Alden Bentley)
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