Stock market news on August 26
The trade war between the two biggest economies in the world is a big issue. The global economy is slowing down, and in this situation, trade disputes are particularly dangerous for the countries. Stock markets in the U.S. and elsewhere are susceptible to the global economic crisis. Countries should try to end their disagreement before it affects all sectors of the global economy.
U.S. President Donald Trump’s announced that China is ready to restart the trade talks. This is great for the stock markets. As what stocks need is the less marker instability in the U.S. and abroad. At the moment stock markets are trying to adjust to the new reality. It is worth mentioning that last week China announced that it would impose tariffs on U.S. goods. The United States responded in a similar manner. Trump administration announced that it would impose 5% duty on $550 billion of Chinese products.
In this situation, Trump’s comment signaled a possible end to this long-running dispute.
Stock market update
The S&P 500 index futures increased by 0.6% on Monday. It is important to mention that the S&P 500 index had the worst week since late May last week. The reason as mentioned above the ongoing trade war.
The Dow Jones Industrial Average is also on the rise. Its index increased by 0.78%. Another index which gained from this situation is the NASDAQ. Its index rose by 0.84%.
The news about U.S.-China trade talks also had a positive impact on U.S. companies. Tech companies used to make billions of dollars by selling parts and components to Chinese companies. Possible end of the trade war will help their businesses to regain their position on the Chinese markets.
The shares of Intel Corp as well as Qualcomm Inc. Nvidia Corp and others rose on Monday. Their shares increased ranging from 1.4% to 3%.
Apple is manufacturing the vast majority of its products in China. The trade war is a very sensitive issue for this tech giant. Its shares are also on the rise.
As can be seen from the U.S. stock market’s reaction the trade war has become a major issue which hinders the global economic growth.