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Dow futures drop 400 points after Trump’s tariff threat catches traders expecting a deal off guard


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A sharp sell-off will start the week on Wall Street after President Donald Trump said on Sunday that the U.S. will hike tariffs on goods imported from China, casting doubt on recent optimism that the world’s two largest economies were close to a resolution to their trade battle.

 

 

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The apparent about-face in trade sentiment left some Wall Street insiders worried about the effect on the U.S. equity market, fresh off record highs.

 

“Another turn of the screw tighter Sunday from the President’s hard-ball tactics with the China trade talks, and his pair of tweets look like they could unleash a sharp stock market correction,” said Chris Rupkey, chief financial economist at MUFG Union Bank, in a note. “For weeks now markets have been lulled to sleep on the US trade war with China thinking an agreement was imminent. No more.”

 

“This has all the makings of a complete disaster that could lead the stock market to crater this week and send those external risks to the US economic outlook soaring,” he added.

 

https://www.cnbc.com/2019/05/05/traders-brace-for-sharp-sell-off-on-trumps-tariff-threat.html

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I'm always amused by the pictures of traders when its going up or down, like they're about to jump out a window or just won a championship game, lol.

 

By the way, the guy ranting and raving about other countries dictating what the US does is demanding China limit its domestic subsidies, of course they're response was his same shit right back at him.

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