- The Dow Jones lost its gains to trade flat on Monday as President Trump dealt with multiple political setbacks, both foreign and domestic.
- Trump may be unable to deliver on his “phase one trade deal,” raising the risks for the stock market of the mid-December tariffs being implemented.
- ABN AMRO forecasts a miserable GDP reading in Q4, which may haunt an elevated Dow.
The Dow Jones fell sharply from its daily highs on Wednesday after Reuters reported that a trade deal between the US and China might not be signed until December. The stock market fell as Dow bulls were forced to reprice their expectations for the imminent “phase one deal” Trump had promised in October.
Dow Flatlines; S&P 500 and Nasdaq Fail to Do Any Better
With the closing bell just minutes away, the Dow Jones Industrial Average had virtually flatlined, dipping 1.55 points or 0.01% to 27,491.08.
The Dow Jones couldn’t hold onto its gains on Wednesday as Donald Trump weathered pushback domestically and abroad. | Source: Yahoo Finance
Among the major US stock indices, the Nasdaq was the worst performer, down 0.31%. The S&P 500 (-0.03%) tracked closely with the Dow.
European stock markets cheered some better than expected PMI readings, helping cushion US equities.
Crude oil plummeted after the announcement of another potential delay in the trade war, while the gold price rallied 0.6% in an apparent move from risk.
Dow Might Have to Deal with December Tariffs After All
Wall Street must digest reports that the December tariffs may go into effect after all. | Source: REUTERS/Lucas Jackson
One of the principal factors hurting the Dow was the concern that the comprehensive tariffs planned for this winter may now go into effect after all.