New York (AP) – American actions fall on Monday as concerns President Donald Trump’s trade war And his criticisms of the federal reserve provoked that investors draw further from the United States.
The S&P 500 was less than 2.1% in morning trading and almost 16% below its record established two months ago. The industrial average of Dow Jones fell by 726 points, or 1.9%, at 10:30 a.m., while losses for Tesla and other large technological shares had the composite Nasdaq down 2.6%.
Maybe more worrying, the US dollar value As also sunk while retirement continues in the US markets. This is an unusual decision because the dollar has historically strengthened during the episodes of previous nervousness. But this time, it is directly from Washington policies that cause fear and potentially weaken the reputation of the dollar as a pillar of the world economy and one of the safest investments.
Trump continued his difficult speech on world trade this weekend, even if economists and investors continue to say that his proposed prices could cause a recession If they are not behind. American discussions last week with Japan have so far failed to conclude an agreement that could reduce prices and help protect the economy, and they are considered a “test case”, according to Thierry Wizman, strategist at Macquarie.
“The golden rule of negotiation and success: the one who has gold makes the rules,” said Trump in all the letters capitalized on his social network of truth during the weekend. He also said that “businessmen who criticize the prices are bad in business, but really bad in politics”, as well in all the ceilings.
Trump recently focused on China, the second world economy, which increased its own rhetoric against the world’s largest economy. China Monday warned of other countries Against the commercial conclusion with the United States “to the detriment of the interest of China” while Japan, South Korea and others are trying to negotiate agreements.
“If this happens, China will never accept it and resolutely take countermeasures in a reciprocal way,” the Chinese Ministry of Commerce said in a statement.
Are also suspended on the market is worried about Trump’s anger against the president of the federal reserve Jerome Powell. Trump last week Criticized Powell again In order not to reduce interest rates earlier to help give more juice to the economy.
The Fed was resisting the drop in rates too quickly because he does not want to allow inflation To reactive after slowing down almost until its target of 2% of more than 9% three years ago.
Asset spoken on Monday on a slowdown for the American economy which could happen unless “Mr. Too late, a major loser, reduces interest rates ”.
A transition to Fire Powell would probably send another flash of fear through the financial markets. While investors always love interest rates, as they increase stock prices and other investments, the greatest concern would be that a less independent Fed would be less effective in keeping inflation under long -term control. Such a decision would still weaken, if not kill, the reputation of the United States as the surest one in the world to keep money.
In Wall Street, several major technical actions have helped reduce lower indices Before their last income reports due later this week.
Tesla sank 6.7%, for example. The electric vehicle stock arrived at around 50% on Monday below its record set in December on criticism that its stock market has become too high and that its The brand has become too hidden With Elon Musk, who runs the United States Government efforts to reduce expenses.
On the winning side of Wall Street, financial services and capital finances, which jumped after the The US government has approved their proposed merger.
Discovering 3% and Capital One increased by 0.9%.
On the bond market, short -term treasure yields have dropped while investors keep the hope that the Fed could reduce its main interest rate overnight later this year to support the economy.
Longer -term yields have swivel from top to bottom, such as doubts Continue to increase the position of the United States in the world economy.
The yield on the 10-year treasure exceeded 4.40% in the morning, against 4.34% at the end of last week and at around 4% earlier this month. It is a substantial decision for the bond market. But he then regressed 4.34%.
The value of the US dollar, on the other hand, fell against the euro, the Japanese yen, the Swiss franc and other currencies.
In the stock market markets abroad, the Nikkei 225 of Tokyo dropped by 1.3%. The indices behaved better in Seoul, where the shares increased by 0.2% and Shanghai, which experienced a 0.4% gain.
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The company writer AP Elaine Kurtenbach contributed.
