US Stocks fell Thursday as Wall Street braced for an escalation in trade dispute between the United States and China, with both sides threatening tariff threats against each other, even as trade negotiations were set to resume late Thursday afternoon.
Shortly after the opening bell the Dow Jones Industrial Average was down to more than 400 points, but at the beginning of the afternoon large indexes reversed much of the loss.
China threatened to oppose the US if President Trump continues with his plan for a sharp rise in tariffs against the world's second largest economy.
Beijing's threat is similar to Trump's decision, announced this weekend, to throw an additional 25 percent tariff of $ 325 billion of Chinese goods, which the administration says will kick off at 1
China's Trade Department said on its website Thursday that the Chinese side regrets it deeply that if the United States takes hold of me Asures is implemented, China must take the necessary countermeasures, "according to Reuters.
Wall Street Journal reported that Beijing took comments this The week of Trump and Vice President Mike Pence that the Fed would cut interest rates as a sign of the White House is concerned about the US economy and thus ready to make concessions.
Mei Xinyu, an analyst at a think tank affiliated with China's Trade Department, said: "Why would you constantly ask the Fed to lower rates if your economy is not weak," according to Journal.
|I: DJI  DOW JONES AVERAGES 25825.66  -141.67||-0.55%|
|I: COMP||NASDAQ COMPOSITE INDEX|| 7895.904077|