Economic news

Trump’s tweet drags Wall Street stocks down

The positive start of Wall Street’s indexes, with a Trump’s statement about new tariffs, turned into a fall on Thursday.

wall street indexes fall

  • The Dow Jones Industrial Average decreased by 1.05 percent, to 26,583;

  • The Standard & Poor's 500 dropped 0.9 percent, to 2,953;

  • The Nasdaq Composite lost 0.79 percent, to 8,111.

The U.S. plans to impose from September, 1, new 10- percent duties on all the remaining Chinese goods worth $300 billion.

But Trump is a wonderful psychologist, in front of a fly in the ointment, there were praises for China and their common remarkable bright future ahead.

An additional factor that contributed to the main indexes tumble was the weak statistics, released on Thursday. The index of business activity in the U.S. manufacturing sector dipped from 51.7 in June to 51.2 points in July. The index was declining the 4th month in a row, having dropped to its lowest level since August 2016.

Market participants expect today, later a report on the U.S. labor market. The report is expected to point out the growth of jobs in July by 165 thousand after a rise of 224 thousand in May, as well as a decrease in unemployment rate from 3.7 percent to 3.6 percent.

Shares of companies whose business is closely related to China went down: Caterpillar (-3.71), Apple (-2.16), FedEx (-4.2), Nike (-3.4), Deere (- 2.7). 

Qualcomm Inc. paper quotes have dropped by 2.68 percent after a weak quarterly report. Nvidia, Intel, Advanced Micro Devices stumbled by 2.25 percent, 2.08 percent and 1.94 percent respectively. 

General Motors shares went down 3.54 percent on quarterly operating profit decrease, despite the fact it gave a good forecast for the second half of 2019.


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