Stocks Tumble Around World as Trade-War US-China Deadline Approaches

Stocks Tumble Around World as Trade-War US-China Deadline Approaches

Tensions between the world’s two largest economies are dragging down stocks from Mumbai to Milan as a deadline of 12:01 a.m. Eastern time Friday approaches, when the United States said it would impose more tariffs on Chinese goods. The worries about trade have halted what has been the hottest start to a year for U.S. stocks in decades, and the S&P 500 index is on pace for its worst week of 2019.


Thursday’s sell-off began steep and widespread, but lost some momentum by afternoon, allowing the market to stem some of its losses.


Still, analysts said the market was likely in for more pain until the uncertainty over the costly trade dispute is resolved.




“China and trade remain the biggest drag and the biggest overhang for the market,” said Ben Phillips, chief investment officer at EventShares. “If there’s not a deal within the next four to six weeks, the market is going to continue to be under pressure and sell off.”


The S&P 500 fell 0.5%, as of 3:28 p.m. Eastern time, and was on pace for its fourth straight loss. The Dow Jones Industrial Average dropped 188 points, or 0.7%, to 25,779. It was down nearly 450 points in morning trading before regaining much of the ground it lost. The Nasdaq composite slid 0.6%. Major indexes in Europe and Asia finished lower.


The U.S. government has filed plans to raise tariffs on $200 billion worth of Chinese imports from 10% to 25%. The Trump administration has also threatened to extend 25% tariffs to another $325 billion in Chinese imports, covering everything China ships to the United States.



If the increases take effect as planned, Beijing will impose “necessary countermeasures,” the Commerce Ministry said.


Negotiations are scheduled to continue in Washington on Thursday.