$DIA, $SPY, $QQQ, $RUTX, $VXX
The United States is preparing to announce tariffs on all remaining Chinese imports by early December if talks next month between presidents Donald Trump and Xi Jinping fail to ease the trade dispute.
Though final decisions have not been made, US officials are preparing for such a scenario in case a planned Trump-Xi meeting yields no progress on the sidelines of a Group of 20 Summit in Buenos Aires in November, according to the report.
Fear that The Trump Administration will announce tariffs on all remaining imports from China helped knock US stocks from a strong early gainer to a loss Monday.
Technology companies sank again after it was reported that the US is planning new tariffs if the 2 sides do not make progress in trade talks next month.
For most of this year investors and traders remained hopeful that the US and China would work out their disagreements on trade policy and that many of the tariffs would be reduced or eliminated. and perhaps they will.
The effects of higher tariffs could be especially severe for technology companies, which make many of their products in China, and for industrial companies, which are already paying higher prices for metals.
The US and China are the world’s largest economies and their trade relationship is the world’s largest, so the higher taxes on imports could also slow global economic growth and increase inflation.
On Wall Street
Technology and internet companies, industrials and retailers saw losses as Wall Street’s volatility continued.
The S&P 500 index has dropped 9.4% in October and may be on track for its worst monthly loss since February 2009. That was right before the market hit its lowest point during the 2008-09 financial crisis.
Monday, the major US stock market indexes finished at: DJIA -245.39 at 24442.92, NAS Comp -116.92 at 7050.48, S&P 500 -17.44 at 2641.39
Volume on the NYSE came in at 1.1-B/shares exchanged
- NAS Comp +2.1% YTD
- DJIA -1.1% YTD
- S&P 500 -1.2% YTD
- Russell 2000 -3.8% YTD
HeffX-LTN’s overall outlook for the major US stock market indexes is Bearish.