Trump’s Trade War Causes Dow To Tumble 800 Points On Wednesday


Stocks took a beating Wednesday as concerns about global economic growth and ongoing trade tensions continued to hang over Wall Street and after the bond market resumed a sell-off that started last week.649642-dow-jones-reuters

Technology companies were among the biggest losers, with the Nasdaq Composite falling 3.5%. In its steepest decline since March, the Dow Jones industrial average  dropped more than 750 points to
25,678.15. The S&P 500 fell for a fifth straight session, down more than 2.5% to below its 50-day moving average.

Following reports that Sears could file for bankruptcy protection  as soon as this week, shares of the cash-strapped retailer plummeted as much as 37%.

US government bonds resumed a sell-off that started last week, with the two-year yield touching its highest since June 2008 at 2.906%. The Federal Reserve is expected to continue tightening after increasing rates three times this year and eight times since the financial crisis.

An ongoing conflict between Washington and Beijing weighed on large-cap industrial stocks, including Boeing (-4%) and Catepillar (-3%). When asked by a reporter Tuesday if he was ready to place additional tariffs on Chinese goods, President Donald Trump replied: “Sure, absolutely.”

A closely-watched inflation measure in the US rose for the first time since June,  according to the Labor Department. Partly driven by a jump in transportation costs, the producer-price index rose a seasonally adjusted 0.2% in September from a month earlier. The rebound was in line with expectations.

Written By: Tommy Lightfoot Garrett
Photographs are Courtesy:  AP
Follow us on Twitter @HighlightHwd or @LightfootinHwd