Looking across the stock market, it's hard to find a company that isn't vulnerable in some degree to the U.S.-China trade war.
That's why all but 2% of the stocks in the S&P 500 fell on Aug. 5, when worries ratcheted higher after China let its currency devalue to its lowest level in a decade. One concern is that all the uncertainty on trade will lead businesses and shoppers to hold off on spending in hopes of waiting out the tumult. Businesses say they have seen inklings of such behavior, which, if it accelerates, could lead to a self-fulfilling cycle where weaker sales for companies push them to cut back on hiring. That could lead in turn to even weaker spending and do more damage to the economy. That's trouble for most companies, to some degree.
That's in large part because the price of oil has sunk on worries that the trade war will do lasting damage to the global economy. If that happens, countries around the world will have less need to burn oil. The price of benchmark U.S. crude plunged nearly 8% on Aug. 1, its worst day in 4½ years.Financial stocks have been the second-worst performing sector in the S&P 500 in recent weeks as the prospect of less-profitable lending threatens banks' profits.
The market for interest rates has gone so haywire this month because of worries about a possible recession that long-term Treasury yields in some cases are lower than short-term yields. That's trouble for an industry that relies on borrowing money at short-term rates, lending it out at long-term rates and pocketing the difference.
Since Trump's 2018 tweet that"trade wars are good, and easy to win," Micron is down 8.5%, while the S&P 500 is up 7.9%.Since Trump initiated the trade with China in 2018, the reaction in the market has been to sell big industrial companies whenever tensions rise. The temptation makes sense given how global the companies are, but it may be misguided, said Stephen Volkmann, an equity analyst at Jefferies who covers machinery and industrial companies.
Source: Energy Industry News (energyindustrynews.net)
The companies hurting are those who have significant manufacturing operations in China. The same applies to other companies who have these operations in other countries as well. If these companies weren't so greedy, they would have workers in this country, not overseas.
Didn’t you see the report yesterday that NY manufacturing is having 0% problems with any part of the trade war! The stock market is run by greed and fear of course it’s going to panic!
This just in... ...
The difference between reporting the news and spreading fear propaganda is whether or not the story has actually happened...
Globalization, that makes all the companies vulnerable. That is the reason why the trade war is a lose-lose game
And it isn’t easy to find an American worker who won’t benefit from it. Is it Wallstreet or Main Street we are concerned with? This administration puts Americans first!
Few understand the MAGAnomic reset, and what was predicted to happen in the space between disconnecting a Wall Street economic engine (globalism and multinationals) and restarting a Main Street economic engine (nationalism/America-First).
Now that we don't need to rely on foreign oil, america can be self sufficient in many ways. How much do we let the rest of the world bully us through a higher tariff on our goods than we impose on theirs? And at what cost to us, and what benefit to them?
But what does that have to do with Michael Scott? Did Dunder Mifflin tank?
Don't any panic body.
The Wall Street is losing someone else's money to win big.
United States Latest News, United States Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Source: CNBC - 🏆 12. / 72 Read more »
Source: trtworld - 🏆 101. / 63 Read more »
Source: ABC - 🏆 471. / 51 Read more »
Source: CNN - 🏆 4. / 95 Read more »
Source: NBCNews - 🏆 10. / 86 Read more »
Source: WSJ - 🏆 98. / 63 Read more »