Author: James Alexander Michie
Since February it has been seen that the United States has had a fall in its shares which has created a great concern and that is possibly due to the impact of the trade war with China’s technology as well as industrial actions. Also, it should be noted that Treasury bonds have increased along with the yen amid the demand for safe-haven assets.
On the other hand, the general sale led the S & P 500 to the lowest level in three months, with the Dow Jones Industrial Average falling to 836 points and the Nasdaq 100 Index falling more than 4 percent on its worst day in seven years. For its part, the 30 members of the blue-chip index withdrew, with Boeing and Caterpillar falling 3.8 percent. Meanwhile, it is known that computer companies took action and took the S & P 500 to a fifth consecutive loss, the longest fall since the election victory of Donald Trump.
It should be noted that the trade war with China leads to an increase with respect to the materials that will reduce the price of materials that will undoubtedly result in the reduction of profit margins. It is important to mention that the Cboe Volatility Index rose beyond 20 for the first time since April while oil dropped from $ 75 per barrel even as a large hurricane headed for the Florida Panhandle.