All three of the major US stock indexes are having a rough time.
Tuesday was the worst day for the Dow since early October and all three indexes are continuing to fall from their record highs that were recorded last week.
Optimism over the possibility of a US-China trade deal has taken a 180 degree turn. Just a week after record highs were recorded on the stock markets, the markets are down on pessimism that a deal isn’t coming anytime soon. US President Donald Trump suggested that the long-awaited deal may come after the 2020 elections. Furthermore, tariffs against China scheduled for December 15th are now set to go ahead as scheduled, unless serious progress is suddenly made.
Amid the ever-growing trade war with China, the US and France are now entangled in a separate trade dispute. France’s “digital tax” against large tech companies was perceived as a deliberate attempt to curb large US tech companies like Amazon. In return, the US has suggested new duties on French exports to the US. France has responded with threats of further retaliation.
Of the 11 major sectors listed on the S&P 500, 9 were in the negative on Tuesday. Apple and Intel corp have taken the hardest hits there. The New York Stock Exchange has also seen more declining issues than advancing ones. Overall volume was also higher, with 7.41 billion shares traded on Tuesday, compared to an average of 6.83 billion shares traded over the last 20 days.