Here's how the U.S. stock market ended today:
Dow Jones Industrial Average: -1.08%, or 285.26 points
NASDAQ: -1.11%, or 88.72 points
S&P 500: -0.69%, or 20.19 points
The U.S. Stock Market's open today saw stocks plummet amidst the start of the U.S. and China duel tariffs on imports that officially came into effect on September 1. This first round of tariffs total more than $100 billion and, by the year's end, nearly every good imported from China will be taxed by the U.S government. This targets many consumer products like food, apparel, footwear and electronics. The full effect of the tariff is not known yet, but many companies will be affected.
In furtherment of the trade war, President Trump tweeted: "we are doing very well in our negotiations with China. While I am sure they would love to be dealing with a new administration so they could continue their practice of "ripoff USA" ($600 B/year), 16 months PLUS is a long time to be hemorrhaging jobs and companies on a long-shot...And then, think what happens to China when I win. Deal would get MUCH TOGETHER! In the meantime, China's Supply Chain will crumble and businesses, jobs and money will be gone!"
While the trade war continues to percolate, Capital Economics weighed in that "the trade dispute with China may be escalating at a rapid pace but, despite the concerns of Fed officials, there is still little evidence that this is having a significant impact on the economy." It seems to be the consensus that the trade war cannot be analyzed until the full scope of the tariffs are launched come December.
In Brexit news, the pound has fallen to a 34-year low against the dollar following the geopolitical fear surrounding the looming Brexit. Prime Minister Boris Johnson threatened to call another general election if lawmakers attempt to block the potential "no-deal" Brexit.
In other news, gold futures rallied back to their highest level in more than six years, with stock increasing 1.69% to $1,555.30 per ounce. It seems that amidst global economic uncertainties many investors have chosen to invest in something more stable.
In stock news, Boeing Co.
Hurricane Dorian is set to meet the U.S.'s eastern coastline this week with many investors expecting the storm to boost stock in home improvement retailers like Lowe's
Tomorrow's update will see how investors continue to respond to the ongoing trade war as the U.S stock market begins September.