Dow Jones PLUNGES 420 points: US trade war sees Wall Street PANIC as index DROPS
THE DOW Jones plummeted more than 400 points today after Donald Trump’s latest China and EU trade war threat set nerves jangling in Wall Street.
By JOEY MILLAR
Express.co.uk
Mon, Jun 25, 2018
Dow Jones, which tracks 30 major publicly owned companies in the US, had fallen 421 points – a staggering 1.71 percent – as of 12.20pm Eastern Time (5.22pm BST).
Experts warned this was due to Donald Trump’s trade war with China and the EU, with investors beginning to worry “this heated rhetoric” will continue for “some time”.
Mr Trump threatened to impose a 20 percent tariff on all European Union car imports last.
The EU – which has promised retaliatory measures on Harley-Davidson, bourbon and other products – vowed to respond.
Sam Stovall, chief investment strategist at CFRA Research in New York, said: “Investors are now beginning to worry that this heated rhetoric is something that will last for a while and could actually lead to disruption of trade.
“They want to stick with equities, but rather hide out from areas most likely to be adversely affected by a pick up in trade tensions.”
Other indexes in Wall Street have also suffered due to the economic instability.
Technology stocks were most impacted, with the S&P technology index falling 2 percent.
The Philadelphia Semiconductor index dropped 3.2 percent, with chipmakers taking a hit as they depend on China for a large part of their revenue.
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