The Dow attempted to claw to a new record high on Monday as a resilient US stock market brushed off two potential escalations to lingering risks from the US-China trade war.
Dow Eyes 5-Day Winning Streak
All of Wall Street’s major indices traded slightly higher during the morning session. Shortly after the opening bell, the Dow Jones Industrial Average had fought its way to an admittedly-paltry 1.46 point or 0.01% gain, which nevertheless raised it to a fresh all-time high at 27,333.49.
The S&P 500 added 0.43 points or 0.01% to trade at 3,014.54.
The Nasdaq outperformed with a 12.5 point or 0.15% increase to 8,256.64.
China Threatens Sanctions on US Defense Industry
Stocks continued to rise on expectations of a Federal Reserve rate cut, but new developments in President Trump’s trade dispute with China risk clouding the market’s rosy forecast.
The South China Morning Post reports that China’s foreign ministry threatened to slap new sanctions on US companies that engage in arms trading with Taiwan.
“The arms sale to Taiwan has violated the basic norms of international law, international relations, and the one-China principle and the three Sino-US joint communiqués [which helped establish diplomatic relations between Beijing and Washington],” said Geng Shuang, a foreign ministry spokesman, in remarks translated by SCMP.
A People’s Daily article revealed that specific targets could include Honeywell International – which manufactures engines for Abrams tanks – and Gulfstream Aerospace, whose parent company – General Dynamics – is the fifth-largest private defense contractor in the US.
Trump Takes Victory Lap as Chinese GDP Plunges to Record Low