BREAKING: Dow drops 450 points after Trump orders US companies to look for ‘alternative to China’

[tacobell fan]

Stocks fell to their lows of the day on Friday after President Donald Trump ordered in a series tweets that U.S. companies find alternatives to their operations in China. Apple led the way lower. 

The Dow Jones Industrial Average traded 460 points lower, or 1.8%. The S&P 500 and Nasdaq Composite slid 1.9% and 2.2%, respectively. 

Trump tweeted on Friday: “Our great American companies are hereby ordered to immediately start looking for an alternative to China, including bringing..your companies HOME and making your products in the USA.”

“The threats always been out there but there’s been no need to provoke that,” said Art Hogan, chief market strategist at National Securities. “It’s almost like the administration was expecting the Fed to announce a rate cut at the Jackson hole meeting. And since Powell did not deliver, he went to defcon 5.”

Apple shares dropped 4.1%. The VanEck Vectors Semiconductor ETF (SMH) slid 3.7% as Nvidia and Broadcom both fell around 5%. Caterpillar shares, meanwhile, pulled back 3.2%.

Trump’s tweets come after China unveiled new tariffs on Chinese goods. China will implement new tariffs on another $75 billion worth of U.S. goods, including autos. The tariffs will range between 5% and 10% and will be implemented in two batches on Sept. 1 and Dec. 15.

Earlier in the day, stocks teetered around the flatline after Federal Reserve Chairman Jerome Powell delivered a speech from an annual central banking symposium in Jackson Hole, Wyoming.

In it he said the Fed will do what it can to sustain the current economic expansion. “Our challenge now is to do what monetary policy can do to sustain the expansion so that the benefits of the strong jobs market extend to more of those still left behind, and so that inflation is centered firmly around 2 percent.”

He also noted there is no “rulebook” for the current U.S.-China trade war, adding that “fitting trade policy uncertainty into this framework is a new challenge.”

But traders may have wanted a clearer suggestion that the Fed would cut rates in September. The market was looking for a more aggressive walk-back of his now infamous “midcycle adjustment” comment that signaled the July rate cut was just an adjustment and not the start of a trend.

Powell said in Friday’s speech that “after a decade of progress toward maximum employment and price stability, the economy is close to both goals. ” Those comments likely didn’t assuage traders hoping for an aggressive easing cycle from the Fed.

“He’s walking a tightrope, he’s balancing so many things that no other fed chairman has had to do in terms of a very aggressive president, markets that are demanding faster and more rate cuts, the geopolitical challenges of trade and now he has a very divided group of fed presidents with very diverse views of where they should go next,” said Michael Arone, chief investment strategist at State Street Global Advisors. “His comments reflect that he’s not going to say ‘we’r cutting significantly over ht next couple of months’ ... he’s really playing it down the middle.”

The yield curve remained only slightly positive on Friday. The spread between the 10-year Treasury yield and the 2-year rate inverted on Thursday after Fed members indicated a September rate cut was not a certainty, raising fears that the central bank would not be quick enough to save the economy from a recession. The yield curve has been a reliable recession indicator in the past.

However, St. Louis Fed President James Bullard told CNBC’s Steve Liesman on Friday that the central bank should keep cutting rates, noting that an inverted yield curve is “not a good place to be. ”

[r2d2]

#%}{€£¥+^#}{{,#%]%^||£*#].?!+<{%+?~\#

[Pumpuhaar]

ammukondi rarei...leda sankanaakipotaar

[pittagoda]

3 minutes ago, Pumpuhaar said:

ammukondi rarei...leda sankanaakipotaar

Till Sep 1st week, it will go low

[Idassamed]

Buy the dip

Buy the dip

[Pumpuhaar]

1 minute ago, Idassamed said:

Buy the dip

Buy the dip

as long as Trump is the Prez....Do not buy the dips too...it will be a mind game

Trade war will not stop

[Idassamed]

Just now, Pumpuhaar said:

as long as Trump is the Prez....Do not buy the dips too...it will be a mind game

Trade war will not stop

December lo baaaga padindi bro, malli back to normal. Aa data point basis meeda antunna, but no one can predict.

[tacobell fan]

Whenever I see @TRUMP, China and Stock Market: 

Bhrammi pressing monitor and dhanraj jumping gif

[Idassamed]

Just now, tacobell fan said:

Whenever I see @TRUMP, China and Stock Market: 

Bhrammi pressing monitor and dhanraj jumping gif

Very apt gif

[r2d2]

[jobseeker1]

1.2, 2% endivaa 

40% 50% padithe cheppu 

[Quickgun_murugan]

24 minutes ago, Idassamed said:

December lo baaaga padindi bro, malli back to normal. Aa data point basis meeda antunna, but no one can predict.

JDST konu ... roju roller coaster ride untadi

[Quickgun_murugan]

22 minutes ago, r2d2 said:

[Quickgun_murugan]

25 minutes ago, Idassamed said:

December lo baaaga padindi bro, malli back to normal. Aa data point basis meeda antunna, but no one can predict.

lesthadi ... @TensionNahiLeneka

[Staysafebro]

13 minutes ago, jobseeker1 said:

1.2, 2% endivaa 

40% 50% padithe cheppu 

Appudu chesukodaaniki job undadhu, undadaaniki illu undadhu, thinadaaniki thindi undadhu, vesukodaaniko battalundavu, konadaaniki paisal undavu.