The unexpected upward trend during 2019 in the American market finally came to a halt as all the stock markets registered a negative closing. 2019 had seen one of the best starts for stock markets in America in recent times. However, Trump’s threat to raise tariff on Mexico by 5 per cent and ignite another front in his trade war after China has brought all the positives to nothing.
The Dow Jones industrial average closed at 24,815 points, sinking by 1.41 per cent or 354 points. The Standard & Poor’s index finished at 2,752 points, a deficit of 1.32 per cent losing 36 points. The Nasdaq composite, too registered a fall of 1.38 per cent on its previous losing 114 points to close at 7,453. It was Dow Blue Chip’s sixth consecutive week of loss. The last time Dow went through six consecutive weeks on the down was back in May 2011. Automobiles, Oil, Railroads, and Banks were the biggest cause of concern. Commodities went up by 1.46 per cent as Gold price read USD 1305.90 per ounce. However, Copper registered a fall too. European markets and Asian markets both registered a downfall as well. Experts believe this is just the start of what could culminate into long term impacts of trade war.
Talking of the trade war with Mexico, it is speculated that the actual cause of Trump’s stern take on the neighbors is due to their inability to keep the illegal immigrants at bay. However, after watching the impact of a trade war with China, Mexico have responded stating they don’t want to enter into any such situation and will try their bit to get it sorted at the earliest. If that happens, markets are supposed to ease a bit over the coming few days again, but will still continue to show the effects of the trade war with China.