Confusion over the administration’s China trade policy related to technology caused a sell-off that pushed the Dow Jones industrial average down nearly 500 points before it recovered and finished down 328 points, or 1.3 percent, at 24,253.
Wall Street fears that economic growth is slowing around the globe as a result of the trade friction. Investors are bracing for lower GDP numbers when second-quarter growth numbers are reported by Europe, China, Japan and other countries.
“A trade war slows growth, raises prices and lowers productivity,” says David Kotok, chief investment officer at Cumberland Advisors, a money-management firm in Sarasota, Florida. “Markets are worried about a worldwide growth slowdown because of a trade war.”
Read the full article at USA Today.
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