Major stock indexes in the United States plunged on Tuesday afternoon, as fears grew that trade differences with China would not be resolved before Friday, when President Donald Trump plans to raise tariffs on Chinese goods
WASHINGTON (Pakistan Point News / Sputnik - 08th May, 2019) Major stock indexes in the United States plunged on Tuesday afternoon, as fears grew that trade differences with China would not be resolved before Friday, when President Donald Trump plans to raise tariffs on Chinese goods.
Wall Street's top investment banks have started to prepare clients for a "worst-case scenario," with all banks predicting steeper losses to come, CNBC reported. An all-out trade war would shave off 45 basis points - nearly a half percent - from global economic growth.
With just over an hour left in the trading day, the Dow Jones Industrial Average had fallen more than 550 points on, the lowest point since March. The Standard & Poor's 500 fell by 2 percent and the Nasdaq Composite Index was down 2.3 percent.
Analysts attributed the sell off to Trump's threat to raise tariffs on about $200 billion of Chinese goods from 10 percent to 25 percent, claiming that Beijing had reneged on pledges in earlier rounds of trade talks.
A Chinese delegation is headed to Washington this week in a bid to finalize deal sought by Trump to trim the US trade deficit with China, which exceeds $500 billion annually.
