Dow recovers almost all of the 471 points it lost
Liu He, the Chinese official who will be heading the delegation
Some good news amidst an unsettle and disturbed economy since the President’s announcement on Sunday that declared a revision of tariffs on Chinese goods that may spark another trade war. The stock markets that fell by great margins the very next morning have made excellent recoveries, this speaks volumes about the virility of the economy at this time.
The Dow Jones Industrial Average was one of the markets that were hit hardest and lost close to 471 points but has recovered almost all of these as it ended the day at 26,438.48 which is just down by 66.47 points. The other markets that were hit have also made a recovery.
The S&P 500 ended the day at 2,932.47 which is 0.4% lower, while the NASDAQ composite was down by 0.5% at 8,123.29. There was a significant surge or acceleration in the market after the information that a Chinese delegation will, in fact, be visiting the U.S. even after the President’s threat.
The group is smaller than what was originally expected but this did make investors breathe a sigh of relief as it shows China’s willingness to continue negotiations.
After the announcement, Dow was down by 471 points while S&P 500 traded down at 1.2% its lows and the NASDAQ Composite was down by about 2.2% briefly, this sudden and immediate fluctuation in the market had investors and analysts worrying about the effect it would have on the markets if the situation spiraled into a trade war.
The Chinese delegation choosing not to cancel its visit and the fact that Dow members like Disney, McDonald’s, and Chevron fared well means good news for now. Will these companies continue to do as well as they are doing now if the trade talks are not fruitful and a full-blown trade war begins? Only time will tell.