The trade war between the U.S. and China goes back to 2018. The U.S. has the largest economy in the world followed by China. However, issues such as intellectual property rights and forced technology transfers dominated the headlines for several years’ before this dispute. Stock markets around the world continue to experience problems due to the trade war.
This week, the U.S. House of Representatives passed two bills, which may provoke the response from the Chinese officials.
The House passed the law named “Hong Kong Human Rights and Democracy Act.” U.S. Senate approved this law on Tuesday. Trump has ten days excluding Sundays to sign or veto bills.
Despite the fact, China and the U.S. reached an agreement regarding the “Phase one” deal. This issue is far from being over, as the date when Donald Trump and Xi Jinping will sign this deal remains unknown. In this situation, speculations are flourishing. This is a serious challenge for U.S. stocks.
Stocks: Dow Jones, S&P 500 and Nasdaq Composite
On November 21, U.S. stocks due to the problems connected with U.S.-China trade talks. The Dow Jones Industrial Average fell by 0.16% to 3,103.54.
The S&P 500 fell by 0.2% to 8,506.21. The S&P 500 index started to decline on Tuesday. It means that the index fell for the third day in a row. Furthermore, it is the first three-day slide since September.
Another major U.S. stock index, which is the Nasdaq Composite decreased by 0.2% to 8,506.21.
As mentioned above, the Dow Jones index declined on November 20. It is worth mentioning that Thursday marked the third straight day of losses. Last time, the Dow Jones index had similar problems in August.
U.S. and China should work harder to solve all of the problems which are somehow connected to the “Phase one” deal. Otherwise, it may take another five weeks or more to sign this agreement.