Stocks plunge on Wall Street as US-China trade war escalates

Specialists Paul Cosentino, left, and Jeffrey Berger work on the floor of the New York Stock Exchange, Monday, Aug. 5, 2019. U.S. stocks nosedived in early trading on Wall Street Monday as China's currency fell sharply and stoked fears that the trade war between the world's two largest economies would continue escalating.

The escalations in the trade war between the world’s largest economies are rattling investors already unnerved about a slowing global economy, falling U.S. corporate profits and possibly too-weak inflation. The yield on the 10-year Treasury note, which rises with expectations of stronger economic growth and inflation, fell to its lowest level since Trump’s 2016 election energized markets, down to 1.73% from 1.85% late Friday. The yield on the 2-year note sank to 1.58% from 1.71% a day earlier. Both are unusually large moves.

A weaker yuan gives Chinese manufacturers a boost by making their products cheaper on worldwide markets for buyers using dollars or other currencies. That hurts U.S. manufacturers, which have already been hit by the slowing global economy. It also adds more downward pressure on inflation, which some economists worry may be edging toward too weak.

Technology stocks bore the brunt of Monday’s selling, and Apple slid 5%. It not only depends on Chinese factories to assemble its iPhones, but China is also the only country aside from the United States that accounts for more than 10% of its sales. Chip stocks were also among the hardest hit in the S&P 500, and Nvidia sank 6.9%.

Meat producer Tyson Foods jumped 6.5% for the biggest gain in the S&P 500 after it reported profits that were better than Wall Street expected. It was one of only 15 stocks in the S&P 500 able to eke out a gain.

joeyandmosh Where’s all that chest-beating now, Donnie?

JessGreer8 You do know cheaper currency means we all pay less than litterly 0% since we as consumers weren't going to see any rise in prices. Come on

So it didn’t drop by 97%. ........

ViaCheri To paraphrase Dr Phil, “how’re those tariffs workin’ for ya” realDonaldTrump

bullish

Funny how all the idiots are pretending that China hasn't been using currency devaluation to 👉👌 us on trade for decades. Just like they've been using tariffs to restrict our access to their markets, resulting in a loss of $Trillions in trade deficits. Trump is right. 💪🇺🇸

The Dow plunged when interest rates went down and afterward trump announced trade tariffs... if you can divest these two, maybe you should tell me which way it will go over the next year

Everyone thank realDonaldTrump, failure. Pretending that China is paying. Liar. We're paying every damn day because of him.

Obamas fault!

Buy some gold

Thanks realDonaldTrump . I see you're still doing 'great' things putz!

Get ready for the next 2008. It is coming.

Submarine_Guy Winning ...!

SO MUCH WINNING! realDonaldTrump ImpeachNow ImpeachDonaldTrumpNOW TrumpResignNow MAGA KAGA

How is this bad? It's as if the DOW never slipped before. It will bounce back. Always does. Time to double down.

TrumpDump

“So much winning”... not! Actually SoMuchLosing Right, realDonaldTrump? MakeAmericaBrokenAgain Everything Trump touches dies WSJ MJGerson nytdavidbrooks tribelaw paulkrugman tomfriedman ianbremmer

In the world of Trade Wars, it looks like General Bonespurs just got his ass handed to him.

Oh hey.. Thanks trump! *the Grift.. that keeps on Grifting..💩🤡 HA.😂 all the definitions

Bring a 4 year plan to a 40 year war....

My next phone is gonna cost 2k now

‘Stocks drop 3%’ Everyone in crypto:

Hyperinflation is always part of the game with Communists it's fine.

To everyone excited that the trade war is getting tough: I know you hate Trump, but try to pretend like you want him to succeed and; Realize that it’s better than real war. If you don’t want to confront China at all, you’re just a cuck. Trade or guns, but not neither.

Americans lose two ways. In stocks and in higher prices for imported goods like electronics.

Trump does not realise that China has over 3000 years of deal-making and trading; they know how to treat interlopers like Trump, the not so smart ass.

Drop 4% more then i start buying.

Is this the easy to win Trade war realDonaldTrump promised?

'China’s announcement that it will not buy any agricultural products from the United States is a body blow to thousands of farmers and ranchers who are already struggling to get by.'— ZippyDuvall FarmBureau agriculture economy ucanr CAFarmBureau

We'll be in a recession by early 2020. Save your money now!

As has been stated by so many, including the AP, in the end no one wins a trade war. Case in point, welfare checks to farmers from the US Treasury(American taxpayers)to make up their losses. And now China is devaluing it’s currency, something trump dared them to do and Dow drops.

WINNING!!!

Zero stock market growth since January 2018!

Why do you hardly mention it when they reach record levels?

Thanks Trump...

Trump better watch his moves. The economy is the one thing that may save him next year. If that goes in the tank, he’s toast.

Thanks Obama!

Trade wars are good and easy to win

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