March 4, 2021

Wall Street opens with heavy losses and Dow Jones falls more than 2%

Wall Street opened the stock exchange session on Monday with heavy losses and the Dow Jones of Industrials, its main indicator, fell more than 2% in reaction to the escalation in the US-China trade war.

At 10.45 local time (14.45 GMT) the Dow Jones left 2.30% or 609 points and stood at 25,876 integers, while the selective S&P 500 fell 2.38% or 69.70 points, up to 2,862, 35

The composite index of the Nasdaq market took the worst part and slipped 3.02% or 241.33 points, to 7,762.75, affected by the notable decline of the technology giant Apple (-4.48%).

The New York parquet began the week in red after the reactivation of the conflict between the two powers on Friday, when US President Donald Trump threatened with 10% tariffs on Chinese products valued at 300,000 million dollars that have not yet They are taxed with additional fees.

The tariffs, announced unexpectedly for September 1 after concluding a negotiation round in Shanghai, discouraged the markets and were not well received by the Chinese Government, which in turn promised reprisals that are already noted on Monday in the currency of That country.

The yuan has broken the psychological barrier of the seven units for every dollar, at a minimum since 2008, and while analysts point out that the People's Bank of China has dropped the value of the currency, the institution attributes it to the market, although it recognizes a direct relationship with the US tariff increase.

Thus, Wall Street operated this morning with pessimism and the most affected sectors ranged from technology (-3.41%) to industrial (-2.32%), through communications (-2.69%) and the financial (-2.46%).

Some analysts fear a recession will come in the coming months if the US trade war intensifies further. and China, which Morgan Stanley chief economist, Chetan Ahya, placed at 9 months in the event that Washinton extends tariffs to 25% to all Chinese imports for 4 to 6 months.

Precisely the Federal Reserve last week took a turn to its monetary policy with the first reduction of interest rates in ten years to revive growth, in a sign of recognition of global weakness, the trade war with China and under the pressure of Trump

Among the 30 values ​​of the Dow Jones, Apple's strong declines (-4.48%) stood out, whose results and demand will be impacted by the tariff conflict, according to analysts, and also from the chip maker IBM (- 4%), both dragging the group as a whole.

With all the signatures in red, Goldman Sachs (-3.48%), Intel (-3.26%), Visa (-3.30%) and Dow (-3.14%) prices suffered.

In other markets, Texas intermediate oil was down 1.42%, to $ 54.87 a barrel, as markets are concerned that commercial affront splashes global demand for crude oil.

Likewise, the profitability of 10-year Treasury bonds fell to 1,753%, at levels not seen since 2016, while gold soared to $ 1,480.10 an ounce, at maximum 6 years, and the dollar lost ground. against the euro with a change of 1,1192.

. (tagsToTranslate) Wall (t) Street (t) lost (t) Dow (t) Jones

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