Stock futures in the United States slipped on Monday after China expressed discount over its present trade relationship with the United States. As a matter of fact, the Dow Jones Industrial Average dropped 93 points in the early morning, which resulted in a 95 drop by the time the market opened; now in its sixth straight week of decline. Both the Standard & Poors 500 and the Nasdaq 100 saw losses as well.
The numbers are no more apparent than in two global trade bellwethers who apparently did suffer from China’s rhetoric. Caterpillar and Boeing fell 2.2 and 1.1 percent, respectively. Technology superstar Alphabet also fell 3 percent, but this was likely more related to the United States Department of Justice revealing their investigation into the Google parent’s potential antitrust violations.
Again, the cause for most of this distress came out of news from China, where Vice Commerce Minister Wang Shouwen said, in a white paper, that the US government will not be able to use any pressure to force a trade deal with Beijing. At the same time, Shouwen could not confirm whether the leaders of the two countries would make an effort to meet at the upcoming G-20 summit in order to work out an amicable agreement.
These remarks come immediately after a month of already heated tension between the US and China, who happen to be the two largest economies in the world. You may recall that the US dramatically increased tariffs on $200 billion worth of Chinese imports. And China, of course, retaliated in kind.
With trade concerns rattling Wall Street investors, President Donald Trump made a threat to also impose a 5 percent charge on all Mexican imports, as well. Contrary to his strategy, apparently, this threat caused even more distress on Wall Street and stocks plummeted even further.
All in all, this marks the first monthly decline for the US stock market since the rout in December. And this sixth straight weekly loss for the Dow Jones Industrial Average is the longest such slump since 2011.