A Day Reflects the Impact of Trade Decisions on the Stock Market
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The decision of President Trump to impose tariffs plus high value artificial intelligence industry. on Chinese products sent major stocks slumping after fear arose as to the consequences. TradeZero Ocean Place Cable Beach, Unit #1 Nassau, Bahamas
In stock trading and investing you must realize that there are various external factors that could play into your decision, no matter what you’ve planned. The stock market depends a lot on trade agreements and governmental decisions. That was realized on March 22, 2018. Dropbox Was the Only Bright News The day had some promising news for cloud storage company Dropbox ($DBX). Ahead of its IPO on March 23, considered the first really big tech IPO of the year, the demand for its shares just kept rising, outpacing the supply. It made the company make a $2 riseon its IPO price range, putting its market value in the region of around $7.85 billion. However, that was probably the only major piece of good news that day. Stocks had tumbled to their worst day ever in six weeks after President Donald Trump decided to impose tariffs on nearly $60 billion worth of Chinese imports. Fears of the impact of these tariffs on the global economy had caused the three major indexes of Wall Street to undergo significant percentage declines. Major Industrial Stocks Slump There was a slump in the major industrials – Caterpillar had a 5.7% drop, Boeing dropped 5.2%, and 3M dropped 4.7%, making up the Dow Jones Industrial Average’s (DJIA) three greatest drags. The DJIA sunk 2.93%, or 724.42 points, to 23,957.89 while the S&P 500 slipped 2.52%, or 68.24 points, to www.tradezero.co
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2,643.69. The S&P industrials sector had a 3.28% plunge. The Nasdaq Composite had a 2.43% drop, slipping to 178.61 points, to 7,166.68. On the 8th of February 2018, the S&P and Dow had a market correction from the highs of January 26. Since then, these losses have been the greatest daily drop in percentage for each of these indexes. There was yet another decline in Facebook ($FB) shares, that were down 2.7%. This has affected the S&P group’s tech sector, which has been the best performing S&P sector this year, and the broader market. There was also a 2.69% decline in the S&P technology index on fears of increased regulation in the backdrop of the Facebook data leak. Pharmaceutical company AbbVie slipped 12.8% after it revealed it wouldn’t seek accelerated approval for its lung cancer experimental treatment based on study results. Consultation Period Raises Hopes of Pacifying Negotiations Despite the signing of the presidential memorandum by Trump for tariffs on Chinese goods, there is a 30-day consultation period provided after the publication of the list of goods on which tariffs will be imposed. This consultation period will give China time to carry out negotiations with the United States for addressing intellectual property allegations placed on it. It also means there wouldn’t be an immediate retaliation by China on products it imports from the United States. But the fear of
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American industries and companies is genuine, and it would take a lot for that negativity to leave. March 22, 2018 is a lesson in the fact that you need to look out for, and anticipate, factors that could potentially rock the markets. That contributes to more efficient and successful stock trading.
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