Today we saw the Dow plunge 760 points in an abysmal day for the American market. In addition, the S&P 500 declined by about 4% during the trading day and another 2% after hours. We are witnessing the full-scale effects of the current trade war with China. This amplified instability of the market is rattling investors and led to the largest single-day sell-off of 2019. Tech stocks like Apple, which dropped 8% today, are being severely affected by the rapidly escalating trade war.
Today was particularly problematic for trade war tensions, as U.S. officials have accused the People’s Bank of China of currency manipulation. The Yuan reached a record low of 7.10 per U.S. dollar, prompting President Trump to call out the Chinese government for deliberately depreciating the Yuan. This retaliation by China casts a bleak outlook on the chances of a trade agreement in the near future. The U.S. stock market now appears wildly volatile and increasingly bearish as this trade war intensifies with the recent retaliations from both sides.