Economic news

Wall Street stocks plummet after U.S. President statements

Wall Street stocks slumped on Monday and nothing else could be expected after Trump’s sudden statements that there would be no agreement with China, and "not a bad idea - both ways".

wall street plummets

The all S&P 500 industry groups indexes dropped on Monday, whereas the Dow’s Merck & Co. shares were the only one, that completed the session in positive territory.

The Dow Jones dived by 1.48 percent, to 25,897, with the blue-chip gauge slumping, the S&P 500 and the Nasdaq lost 1.22 percent and 1.20 percent, to 2,883 and 7,863 respectively.

Goldman Sachs experts downgraded the forecast for U.S. GDP growth in the Q4 by 0.2 percent to 1.8 percent. Some concerns are growing that a trade war could provoke a recession.

Meantime, the situation is heating up in Hong Kong, where mass protests have been going on for more than 2 months. Under such conditions the demand for the most reliable assets is growing, among them the U.S, Treasuries bonds, thus the yield on 10-year U.S. government bonds on Monday touched its lowest level since October 2016 1.64 percent, which, in turn, pushed down bank stock quotes.

The financial companies stocks, related to S&P 500, eased by 1.9 percent. The value of Bank of America’s securities decreased by 2.4 percent, Citigroup shares went down by 2.7 percent, JPMorgan Chase equities tumbled by 1.9 percent, Goldman Sachs capitalization edged down by 2.6 percent.

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