A Week of Caution from Investors as Trade War Intensifies
With advanced stock trading software, you can make more informed stock trading decisions. What is important for every trader or investor is constant monitoring of the markets. That’s important for planning future moves.
The Strategy of Continuing Tariff Hikes Takes Its Toll
To look at trends for the week ahead, let’s look at how the past week has been. A cautious approach is what investors would have to take. That’s because there were heavy losses slashed by the Dow Jones futures, Nasdaq futures and S&P 500 futures on Monday early morning as a result of rising China trade tensions. President Trump had already hiked tariff rates for Chinese products and maintained that this would continue to be the strategy. That puts the focus on stocks such as Apple ($AAPL), Micron ($MU), Tesla ($TSLA) and Nike ($NKE). These are stocks that have the greatest influence of China in terms of their manufacturing processes and markets.
Friday experienced a sharp sell-off after China increased tariffs on American goods and Trump decided to intensify the trade war. $TSLA dropped 4.8% on Friday while $AAPL and $MU tumbled 4.6% and 4.1% respectively. Nike ($NKE) too dropped 3.4%. Boeing ($BA) did rise 0.45%, though, on hopes that the 737 Max would return to flight. However, the stock closed around the session lows.
No Easing on Tariffs Likely Anytime Soon
Trump has indicated that tariffs imposed on Chinese products worth $300 billion would be raised further from 25% to 30%. Further tariffs on other Chinese products worth $300 billion would be at 15% starting September 1, and not the earlier planned 10%. Though the tariffs may already have been priced in by investors, there is still a gloom with regard to the future.
These developments have shown that with the escalation of the trade war, there isn’t much hope of a stock market rally being sustained. Even if the Fed cuts rates, a trade war’s impact can’t quite be counterbalanced.
Uber’s Staff Layoff
In other news, Uber has been laying off staff – a third of its marketing department. The company says these are part of an attempt to restructure the department for better brand messaging. Of the 1,200 employees Uber has in its marketing department, the company says it will lay off 400. These come a month after Uber revealed that Rebecca Messina, its Chief Marketing Officer, would resign.
Challenges and times of gloom are always present in online stock trading, because of so many factors that the markets depend on. But with proper planning and expert opinion, you can be prepared for what comes.
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