Ongoing concerns about the us-China trade war and uninteresting job report caused a surge in volatility in the US markets on Friday, the Industrial index Dow Jones (DJIA) and the S&P 500 index and collapsed.
DOE received 574 point fall (down 2.3%) and the Nasdaq sank 161 points (2.3 percent). At some point, the Dow fell nearly 700 points. The Dow finished minus eight over the last 14 days.
The Dow Jones Industrial Price Chart Action.
The vix index which measures volatility in U.S. markets increased by more than 12.8% as of press time.
The new Chairman of the Federal reserve system Jerome Powell introduce further anxiety in the markets on Friday. Speaking in Chicago on the state of the economy, said Powell, the fed will have to raise interest rates to keep inflation under control. The Central Bank also noted that the labor market in the United States was close to full employment, which could spell the inflationary period that would raise the price level.
The us economy added in March, about 103 000 jobs, exceeding analysts ‘ expectations, roughly 185,000 jobs would be added.
“Markets do not work, almost like a negative to all news in General, if not to be in a vulnerable state. He received the highest values, financial liquidity is declining, you’ve come in a year too much optimism, you have the growth occurs, you have inflation fears,” Jim Paulsen, U.S. investment strategist, told Reuters on Friday.
If domestic economic conditions are not enough to sour the market mood, U.S. President Donald trump has intensified the threat of higher import tariffs on Chinese goods. Trump also announced new sanctions against Russia on Friday, provocation, stimulation of Moscow promised a “harsh response” and say that many jobs depend on their business.
White house Director of National economic Council Larry Kudlow told journalists on Friday that Washington and China will be able to prevent a trade war over the next three months. However, there are always foreign policy risk “can go wrong”, he said.
Treasury Secretary Steve Mnuchin explained Friday that while it is possible for a full-scale trade war, Beijing imposing its own tariffs on American goods is unlikely to cause “substantial harm” to the US economy.
Sourse: sputniknews.com
