|Day's Range||7,901.01 - 7,986.10|
|52 Week Range||6,343.96 - 8,133.30|
Stocks gained despite concerns over the trade war and other global economic issues. A survey suggests investors believe the U.S. market could keep rising.
Investors “were expecting tariffs of 25% and instead only got ones of 10% for now so the reaction is quite positive.”
The CEO of Richard Bernstein Advisors believes the notion of a late-cycle environment is confusing investors.
The US-China trade spat intensified after President Trump imposed additional 10% tariffs on $200 billion worth of goods from China. Some market participants believe that since China exports much more to the United States, the country is more likely to be negatively impacted in the trade war as compared to the US.
Yesterday, President Trump imposed a 10% tariff on $200 billion worth of goods from China. For now, tariffs don’t yet cover Apple (AAPL) smartwatches and some other consumer products. While the tariffs are a somewhat toned-down version of what Trump previously threatened, they have nevertheless hurt sentiments. Trump also warned China that “we will immediately pursue phase three, which is tariffs on approximately $267 billion of additional imports” if the country retaliated against the tariffs. China has previously retaliated against US tariffs with tit-for-tat measures.
ServiceNow (NOW), an enterprise cloud computing solutions company, fell 5% on September 17. The stock is currently trading at $192.82, which is 75% above its 52-week low of $110.17 and 6.5% below its 52-week high of $206.30. ServiceNow stock has risen an impressive 48% in 2018.
U.S. stocks slipped Monday, sending the Nasdaq Composite to its biggest one-day loss since July, as fresh trade threats between the U.S. and China stoked caution among investors. Signs that the U.S. trade fight with China is set to escalate this week capped stock gains and sent the dollar lower. The Trump administration is planning to unveil new tariffs on $200 billion in Chinese goods, with President Trump saying Monday that he would make an announcement after the end of the trading day.
Asia markets were largely positive on Tuesday despite an escalation in trade tensions between the U.S. and China. On Monday, the White House announced that President Donald Trump will impose 10 percent tariffs on $200 billion worth of Chinese imports, and those duties will rise to 25 percent at the end of the year. The U.S. has already levied tariffs on $50 billion worth of Chinese products and Beijing responded with measures targeting $50 billion on American goods.
U.S. stock futures reversed earlier sharp losses to trade slightly higher ahead of Tuesday's open, however market jitters remain as the tit-for-tat trade war between the U.S. and China continues to intensify. Following the close of Monday's turbulent session, Dow futures indicated a negative open of 100 points lower at 8 p.m. ET Monday night, with the Nasdaq and the S&P 500 futures also pointing to downbeat opens. Nasdaq and the S&P 500 futures also eked out gains.
Amid the US-China (MCHI) trade tension, investors should note that bilateral trade between the countries is lopsided—China imports far fewer goods from the United States than it exports. Therefore, China will likely not be able to retaliate dollar-for-dollar to tariffs on $200 billion in Chinese goods. However, it may explore other ways to respond.