On August 23, Chinese officials decided to impose tariffs on American products starting from September. The trade war started in 2018, but it is far from being over. The latest episode of this trade dispute highlighted that both sides are unable to come to an agreement. Countries tried to renew the negotiations process, but this attempt ended without any sign of progress.
Problems created by the trade war continues to affect the global economy. This trade conflict created additional issues for the U.S. and China.
On Monday, U.S. President Donald Trump stated that China was ready to restart the negotiations.
U.S. Stock market and tariffs
The S&P 500 index futures rose by 0.6% on Monday. It is worth mention that the S&P 500 index had the worst week since May last week. The primary factor was the trade war.
The Dow Jones Industrial Average also increased on August 26. 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 affected U.S. companies. Tech companies used to make billions of dollars by selling various products to Chinese companies. The end of the trade war will help them 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. It means that the trade war is a sensitive issue for the Cupertino-based company. Its shares also gained from this positive news.
The U.S. stock market’s reaction once more highlighted that trade war had a massive impact on the global economy.