Dow Jones futures were little changed Tuesday morning, along with S&P 500 futures and Nasdaq futures. The stock market rally took a step back Monday after Dow Jones giant Caterpillar (CAT) reported a huge earnings miss and chipmaker Nvidia (NVDA) warned on revenue, both blaming China. The tumbles in Caterpillar stock and Nvidia stock follow China-related concerns from Apple (AAPL), Intel (INTC) and Starbucks (SBUX). All of that highlights the importance of China trade talks starting Wednesday in D.C.
The Chinese economy is slowing down considerably, and the China trade war isn’t helping. President Donald Trump has said the China trade talks are going well. The stock market rally this year has a lot to do with optimism for a China trade deal. Wall Street has largely discounted reports that suggest snags in China trade talks. If there’s no China trade deal and Trump tariffs expand on March 2, brace for a highly negative impact on the stock market and the Chinese economy, as well as on the U.S. and global economy.Read More
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