Here’s Why The Stock Market Got Crushed Today

Taxes

Topline: The stock market was off to a rough start on Tuesday, and although it rebounded slightly in the afternoon, rising uncertainty over trade talks with China—set to start Thursday—took a huge toll and prompted a further sell-off. 

  • With fading optimism around U.S.-China trade negotiations, the S&P 500 dropped 1.56%, while the Dow Jones Industrial Average was down 1.19%.
  • The CBOE Volatility Index spiked 9.5% following Tuesday’s reports that both sides were ramping up trade tensions.
  • Every different sector of the market was in the red, with all but two out of 11 sectors falling by more than 1%.

Here are all the latest trade developments roiling the markets:

  • Just days before trade talks were scheduled to resume, the Trump administration again escalated tensions on Monday, moving to blacklist eight more Chinese technology companies and reportedly discussing limits on pension investments in Chinese stocks.
  • A Chinese Foreign Ministry spokesman on Tuesday said to “stay tuned” for China’s retaliation, followed by the Ministry of Commerce saying it “strongly urges” the U.S. to remove sanctions and stop accusing China of human rights violations.
  • The South China Morning Post also reported that the Chinese delegation is toning down expectations and already planning to cut short it’s stay in Washington.
  • Later on Tuesday, the Trump administration reportedly implemented new visa restrictions on a slew of Chinese officials over alleged abuses of Muslim minorities in Xinjiang. 

What to watch for: The all-important trade talks on Thursday and Friday. If no progress is made, the U.S. will go ahead with its planned tariff hike on $250 billion worth of Chinese goods, from 25% to 30%, on October 15.

Articles You May Like

4 red flags for an IRS tax audit — including what one tax pro calls a ‘dead giveaway’
Lucid to cut 1,300 workers amid signs of flagging demand for its EVs
Facebook Tax Case Could Decide Fate Of Anti-Profit-Shifting Rules
Grace Perez-Navarro: Tax Mainstay For 30 Years
How women answer 5 questions may be a financial wake-up call, personal finance expert Suze Orman says

Leave a Reply

Your email address will not be published. Required fields are marked *