Wall Street climbs as trade fears ebb

Sean Reid
April 7, 2018

The S&P 500 fell 58 points, or 2.2 percent, to 2,604.

Stocks are falling again as trade tensions heat up between the US and China. "We are not in a trade war with China, that war was lost many years ago by the foolish, or incompetent, people who represented the U.S. Now we have a Trade Deficit of $500 Billion a year, with Intellectual Property Theft of another $300 Billion".

The S&P 500 (.SPX) was down 26.29 points, or 0.99 percent, at 2,636.55 and the Nasdaq Composite (.IXIC) was down 63.26 points, or 0.89 percent, at 7,013.29. About 268 of the S&P 500 components were lower. Caterpillar (CAT.N) declined 2.8 percent and Deere (DE.N) dropped about 2.3 percent.

Last month, President Trump imposed $50 billion tariffs on China for what he called "the country's theft on American technology".

President Donald Trump's administration spent the past few days reassuring investors that it's not rushing into a trade war, and China's government has done the same.

The government reported that USA employers added 103,000 jobs in March, a weaker pace than the last few months.

Economists had expected an increase of about 205,000 jobs compared to the addition of 235,000 jobs originally reported for the previous month.

The turnaround was the biggest comeback for the DJIA since February 6 when it dropped by 2.33% before later gaining 2.35%.

The next chart highlights that the 10-year yield has spent the majority of the past 25-years inside of a falling channel.

Wall Street's three major indexes staged a comeback to close around 1 percent higher on Wednesday as investors turned their focus to earnings and away from a trade conflict between the United States and China that wreaked havoc in earlier trading. Natural gas rose 3 cents to $2.70 per 1,000 cubic feet.

Gold was down 0.8% at $1,329.00. All components of the Philadelphia chipmakers index trading premarket were lower, led by AMD's 4 percent drop.

The dollar fell to 106.85 yen from 107.12 yen.

Germany's DAX was down 0.5 percent while France's CAC-40 fell 0.3 percent lower.

The selloff in US stocks deepened Friday as the White House's latest trade bluster rattled global financial markets.

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