Dow Falls 391 Points Amid US-China Trade Woes, Hong Kong Protests

For starters the president’s tweets overmagnify the importance of a 10 percent tariff on $300 billion which is $30 billion — nothing to a $20 trillion economy like ours

For starters the president’s tweets overmagnify the importance of a 10 percent tariff on $300 billion which is $30 billion — nothing to a $20 trillion economy like ours

On Wall Street, the benchmark Standard & Poor's 500 had its biggest decline in a week while the Dow Jones Industrial Average lost almost 400 points.

The 30-year Treasury bond yield stood at 2.13% on Friday in the aftermath of a rally in long-term government bonds over the past few weeks. An escalation in tensions this month between the world's largest economies has stoked worries that the fallout from the costly trade conflict will undercut an already slowing global economy.

The S&P 500 Index rose 1.4% as of 9:54 a.m. They earlier fell to a more than three-year low of 2.119%. The average was briefly down 462 points.

In Asia, the Shanghai Composite Index lost 0.6% to 2,797.26 and Tokyo's Nikkei 225 tumbled 1.1% to 20,455.41. The indexes are down more than 3% for the month, but still up solidly this year, led by the Nasdaq's 18.5% gain. The S&P 500 is now sitting about 5% below the all-time highs set in late July prior to the outbreak in trade tensions. -China trade war leading to a recession were growing and that it no longer expected a trade deal before the 2020 US presidential election. -China trade war continues to hover over the market and has taken stocks on a wild ride in August.

Trade tensions spiked earlier this month after President Donald Trump vowed to impose a 10% tariff on $300 billion of United States imports from China. The new tariff would go into effect September 1 and more directly affect US consumers.

The euro climbed 0.1% to $1.1211.

Asian stocks were primed to rally after the Trump administration de-escalated its trade war with China, providing relief to risk assets that had been under pressure earlier in the week. -China trade spat spreads. "Multinationals are being very cautious". A USTR spokesman said U.S. Trade Representative Robert Lighthizer and Treasury Secretary Steven Mnuchin had talked with Chinese Vice Premier Liu He over the phone. The yield is used as a benchmark for interest rates on mortgages and other consumer loans. US 30-year bond yields slid to their lowest since July 2016. Citigroup, Morgan Stanley and Goldman Sachs fell about 3% apiece. Traders usually seek the shelter of utilities and bonds when they want a more secure place to put their money because of concerns over economic growth. The company's revenue edged higher on growth from its USA operations.

Shares of cannabis producer CannTrust fell as much as 25% on Monday after Health Canada rated one of its facilities in Vaughan, Ontario non-compliant. Chinese authorities have warned that the unrest could send Hong Kong into a recession and said that the city is at a "critical juncture".

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"You've got the problem of the protectionist push leading to this downdraft in the economic data, leading to stretching the cycle", said Ben Powell, chief Asia-Pacific strategist at BlackRock Investment Institute.

Macy's reports quarterly results on Wednesday and Walmart will report results on Thursday.

Second-quarter reporting season is approaching the finish line, with 452 of the companies in the S&P 500 having reported.

Energy futures were mixed.

Gold advanced 0.8% to $1,522.91 an ounce.West Texas Intermediate crude sank 0.8% to $54.47 a barrel.Silver advanced 1.8% to $17.37 per ounce. Brent crude oil, the global standard, added 4 cents to close at $58.57 a barrel.

The British pound was little changed at US$1.2078. Heating oil was also unchanged at $1.81 per gallon.

The S&P 500 Index spiked higher after trade officials named a broad swath of consumer goods that would be spared from tariffs at the current September 1 deadline.

The dollar gained to 105.57 yen from Monday's 105.30 yen.

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