The financial markets are still aiming to maintain a straight win spectrum with the corporate bigwigs counted on to bring in the good tidings. However, on Friday, February 8th, the Dow Jones Industrial Average futures fell 139 points, indicating a loss of 144.53 points at the time of the market opening.
The Futures on the other markets such as the S&P 500 and Nasdaq 100 were also lower than expected. Market analysts speculate that the reason for the downturn is the cloud of uncertainty surrounding the trade talks between the United States and China.
According to reports, the S&P 500 fell by 0.94 percent to settle at 2706.05, while Dow industrials dropped 220.77 points to end at 25,169.53 and the Nasdaq Composite closed at 7,288.35 after falling by 1.2 percent.
The Nasdaq composites show a 5-day return of 0.09 percent while the three-month returns are in the negatives, clocking at 3.22 percent. The influence of current affairs on the Dow Jones market still stands strong, with the latest news that Donald Trump will not meet with Xi Jinping before the March 1 deadline to discuss trade tariffs.
Trump reportedly said a ‘not yet’ to journalists in the Oval Office when asked whether he would carry forward the meeting with the Chinese premier before the all-important deadline. Source also revealed that:
“There was concern about the downside for markets in particular if they don’t reach a deal.”
Peter Jankovskis, co-chief investment officer at OakBrook Investments LLC added:
“I could see where that would impact the markets because obviously we had a lift in the month of January from optimism surrounding these trade talks.”
The impact on the markets is substantial because the President of the US has vowed to increase the trade tariffs on $200 billion worth of Chinese imports from 10 percent to 25 percent in case the two heads of states cannot come to a consensus by 12:01 am on March 2.