Don't mention the trade war: Wall St rebounds led by tech stocks

Don't mention the trade war: Wall St rebounds led by tech stocks

The Dow Jones Industrial Average rose 207.06, or 0.8%, to 25,532.05, and the Nasdaq composite index jumped 87.47, or 1.1%, to 7,734.49.

China's finance ministry said on Monday it planned to impose tariffs ranging from five per cent to 25 per cent on 5,140 U.S. products on a target list worth about $60 billion from June 1, striking back after the USA raised duties last week.

Items affected include beef, lamb and pork products, as well as various varieties of vegetables, fruit juice, cooking oil, tea and coffee. This comes after President Donald Trump raised tariffs on Chinese imports last week.

Federal Reserve's NY chief John Williams, a voter in the interest rate setting committee this year, said on Tuesday the recent USA tariffs imposed on Chinese goods will boost US inflation and could dampen economic growth. The stocks of Apple Inc. slumped 5.8 percent and chipmaker NVIDIA fell 6.1 percent.

But he added that China trade agreement issue is changing investing into more like speculating business because no one knows what direction it will go.

Asian markets fell broadly. The Nasdaq Composite Index fell 159.53 points, or 2%, to 7,963.76.

European stocks closed lower across the board. But "this is more of a re-evaluation of stocks than it is a pure panic".

On Tuesday, at least, such worries eased. Treasury prices and yields move in opposite directions.

The CBOE Volatility index, a gauge of investor anxiety, posted its biggest daily point gain so far this year.

"It could be very bad", he added.

Just a few hours before, China said it would impose higher tariffs on $60bn of American goods in response to an earlier set of United States levies.

US equities fell sharply last week after Trump threatened to hike tariffs on China.

"Investors are looking for opportunities to get into this market, and so far in 2019 there really haven't been any "buy the dip" opportunities other than last week", Ryan Nauman, market strategist at Informa Financial Intelligence, said by phone. -China trade tensions resulted in the worst daily decline for the Dow in about four months.

Some of those losses were mitigated on Friday after stocks staged a massive comeback, however. However, anxiety still hovered over markets after unexpectedly weak USA and Chinese economic numbers Wednesday heightened worries the trade war could weigh on a global economy that's already staggering. -China trade battle because many of their customers and suppliers are overseas.

China's Treasuries holdings are still more than double where they stood before the USA recession and comprise about a third of the country's $3.1 trillion in foreign-exchange reserves. This is simply because most American companies have established big manufacturing plants in China.

Some calm around U.S.

Energy futures recovered, with US crude gaining 63 cents to $61.67 per barrel in electronic trading on the New York Mercantile Exchange.

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