- Editor’s note: Yelm Community Blog readers have repeatedly been informed an economic crisis was nigh with Trump’s trade wars, now-lowering manufacturing growth, and massive national debt increases since her took office. Indeed, yesterday’s blog post outlined the perils that manifested today.
“S&P 500 plunges in worst loss of year as trade war escalates”
“U.S. stocks plunged to their worst loss of the year Monday and investors around the world scrambled to sell on worries about how much President Donald Trump’s worsening trade war will damage the global economy.
“China let its currency, the yuan, drop to its lowest level against the dollar in more than a decade, a move that Trump railed against as “currency manipulation.” It also halted purchases of U.S. farm products. The moves follow Trump’s tweets from last week that threatened tariffs on about $300 billion of Chinese goods, which would extend tariffs across almost all Chinese imports.
“The escalating dispute between the world’s largest economies is rattling investors unnerved about a global economy that was already slowing and falling U.S. corporate profits.
The S&P 500 dropped 87.31 points, or 3%, to 2,844.74 for its worst loss since December, when the market was wrapped in the throes of recession fears. It was down as much as 3.7% in the afternoon.
The Dow Jones Industrial Average lost 767.27, or 2.9%, to 25,717.74, and the Nasdaq composite fell 278.03, or 3.5%, to 7,726.04,” by Stan Choe, AP Business Writer.
“Gold Soars On Safe-Haven Demand; More Upside Likely”
“Gold prices are sharply up and have hit a six-year high in early-afternoon U.S. trading Monday. Strong safe-haven demand is featured to start the trading week, amid an escalating U.S.-China trade war and civil unrest in Hong Kong. December gold futures were last up $19.60 an ounce at 1,477.00. September Comex silver prices were last up $0.11 at $16.38 an ounce.
“World stock markets tumbled Monday amid heightened worries about an escalating trade war between the world’s two largest economies—the U.S. and China. U.S. stocks are sharply lower and near daily lows at midday.
“The Chinese currency, the yuan, depreciated to a near record low against the U.S. dollar Monday, at 7.1087 to the dollar. This is leading to ideas China has thrown in the towel on any trade agreement with the U.S. coming anytime soon. China’s central bank appeared to condone the decline in its currency, saying the yuan’s fall is the result of U.S. protectionism and that the yuan remains stable. In the past, China’s central bank had stepped in to boost the yuan when it reached 7 to the dollar.
President Trump announced late last week that on September 1 he will slap another 10% tariff on Chinese imports into the U.S.,” by Jim Wykoff, KITCO.