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Fearing an escalation of the trade war with China, stock markets plummet… then rally

Stock business declined today as investors worried about the potential for an escalating trade war with China sold off shares.

Markets had been trading near or above all-time high-flowns before President Donald Trump threatened to significantly increase tariffs on Chinese goods. The bulletin sent stock market into a free-fall in mid-day trading, but world markets staged a late-day surge to end the day with less severe declines.

The escalating war of words between U.S. and Chinese officials and trade delegates moved sells slumping. Approximately $200 billion merit of Chinese importations are at issue, with the President threatening to bump tariffs to 25% up from 10%.

At one point, the Dow Jones Industrial Average was down over 600 stages before intent the day at 473 degrees down thanks to a late-day rally, which made up some of the losses.

The heart of the issue between the U.S. and China is American negotiators alleging the Beijing government of reneging on commitments it had already drew in trade talks.

Investors were terrible that tariffs on Chinese goods could mean a slowdown in U.S. exports and cause some belt-tightening among customers who would insure premiums rise for a number of goods.

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About the author, Gregg Kell

Entrepreneur, Business Success Partner and Shaping The Future Podcast Host.

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