- US stocks fall by 1.73% and international stocks were down by 2.33%.
- Trump hikes tariffs on China.
- Uber's IPO turns negative.
The market rally since the December 24th low had been powered by a dovish turn by the Fed and the anticipation of a trade deal with China. Well, you can take the trade deal with China off the table, at least for now, as President Trump surprised the markets on Monday by tweeting that he was going to increase tariffs because of backtracking by China in trade negotiations. That set off a rough week, with the S&P 500 falling by 2.2%. About $2 trillion in equities values vanished according to Refinitiv with the loss. Trump followed through on his promise implementing a 25% tariff on $200 billion in Chinese imports. The market did manage to finish up on Friday after being down by about 1.5% on hopes that the two countries would eventually reach a deal.
Uber turned in one of the worst IPO’s in recent memory. Closing at $41 after being priced at $45 per share. Investors are not so keen on a company that is generating $1 billion in quarterly losses.
Bruce Konners, CPA, CFA, PFS
Past performance does not guarantee future results.
The purpose of this commentary is to provide readers with a summary of recent market and economic news. It is not intended to provide trading advice. Investors should have a long-term plan and should consider working with a professional investment advisor. The statements and opinions expressed in this article are those of the presenter(s). Any discussion of investments and investment strategies represents the presenter’s views as of the date created and are subject to change without notice. The opinions expressed are for general information only and are not intended to provide specific advice or recommendations for any individual. Any forecasts may not prove to be true. Economic predictions are based on estimates and are subject to change.