US stocks fall amid Trump’s threats
US stocks are headed for a low opening on May 1, following one of the best monthly performances in decades. Markets reacted sharply to President Trump’s threat of implementing new tariffs on China trade.
By 15:55 SGT the S&P 500 Futures lost 2% - 57 points. Nasdaq 100 dropped 2.5% - 222 points. The Dow Jones 30 lost 1.9% - 451 points.
April ended on a high note for Wall Street. The Dow Jones Industrial Average climbed 11.1%. S&P 500 closed the month with 12.7% gains - the best performance since at least 1987. The Nasdaq Composite reported a 15.5% return - the best performance since 2000.
On April 30, however, President Tump expressed concerns about China’s responsibility for the pandemic, as well as the future of the recent trade compromise. As the economy has transformed since negotiations, the president warned that new tariffs are possible as a way to retaliate. The first deal that was supposed to end the US-China trade war has been signed back in January, shortly before the coronavirus began to spread.
The largest stocks, that carried S&P 500 earlier, showed signs of weakening. Amazon shares lost 4.9% after the company revealed its plans to spend the Q2 earnings on the pandemic-related issues. Apple lost 2.5% when no earnings forecast was published.