What has just happened? A summary of this week's massive sales in the market

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The Dow recorded its worst week since March. For the S & P 500 and Nasdaq, it was the worst since December. Global actions have also been criticized.

The culprit: the fear of a trade war with China. Tensions between Washington and Beijing intensified this week, leading to higher tariffs on Chinese imports on Friday.

This is how we got here.

In a tweet, President Donald Trump threatened to raise tariffs on some $ 200 billion worth of Chinese goods from 10% to 25%.

Monday: stocks dipped early

Shares plunged early Monday in response to Trump's comments. But when investors assessed the risk of escalating tensions, the initial panic eased. After all, Chinese Vice Premier Liu He was still scheduled to travel to Washington for the next round of trade talks. This gave the market the hope that something could be settled and the shares reduced their losses until closing.
After closing, however, Treasury Secretary Steven Mnuchin and US Trade Representative Robert Lighthizer confirmed that the new rates were a very real risk. Futures contracts have collapsed.

Tuesday: the very bad day

Looking back, Monday seemed calm before the storm.

the Dow (UNDUE) fell 473 points on Tuesday, falling below 26,000 points. This is the worst one-day percentage decline in the index since January 3rd. S & P 500 (SPX) and Nasdaq (COMP) also fell, the last falling below 8,000 points for the first time since April 18th.

Wednesday: from top to bottom

In a tweet, Trump announced that Chinese Vice Premier Liu He would travel to Washington to reach an agreement. Sarah Sanders, press secretary at the White House, also told reporters that China had informed the administration that Beijing actually wanted to reach an agreement.

All this positivity has bounced the actions. The Dow has even made a gain, even if only by gaining 2 points.
Then Trump said that he had decided to raise tariffs on imports from China because China "had broken the deal."

Thursday: time of the trade negotiations

These comments weighed on stocks on Thursday. At one point, the Dow Jones lost more than 400 points. But Trump sparked some optimism after he said he received a "beautiful" letter from Chinese President Xi Jinping. He also said that both parties "were very close" to a trade agreement. The Dow ended the day by losing more than 100 points, while the S & P 500 and Nasdaq finished down 0.3% and 0.4% respectively – the fourth day in a row, the last two ended in the red.

Friday: Not agree but optimism

On Friday, at 12:01 pm, Eastern Time, the threat of rate increases came into effect, although it should not apply to goods already in transit. Trump spoke to Twitter and praised its pricing strategy.

Trading was volatile. At worst, the Dow was 300 points lower. But the situation improved when Mnuchin called Friday's talks with China "constructive." During the last hour of negotiations, Trump tweeted that the talks with China had been "frank and constructive", that his relations with President Xi remained solid and that discussions would continue. Investors reacted favorably and the Dow ended the day up 114 points, up 0.4%. The S & P and Nasdaq have started a series of four consecutive losses.

These gains could not repair all the damage of the week, but Friday helped the weekend with cautious optimism. We will see if that will hold.

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