The major U.S. indexes swung like a pendulum Wednesday, starting deep in the red and ending the day erasing their losses and then gaining more ground.
The Dow opened more than 500 points down then made a 700-point turn, ending the day up by 230 points. The S&P 500 and the Nasdaq both started the day almost 2 percent down. At the closing bell, both indexes had climbed back up to clock in gains of more than one percent.
But not all market watchers were fazed by the swing. “We have been spoiled for the last five years of low levels of volatility,” said Omar Aguilar, Chief Investment Officer for Equities at Charles Schwab Investment Management.
“These swings in the market are not very atypical. [But] the long term trajectory of the market is very positive. The economy’s good, earnings are good, and overall the global recovery is still in the same place.”
Much of the initial sell-off was spurred by China’s overnight announcement of new tariffs on over 100 U.S. products, including soybeans, corn, and orange juice.
China’s decision was motivated by the Trump administration’s announcement that it had intended to tax $50 billion worth of Chinese products.
The tariff announcements rattled both investors and industry leaders, who worried that the tit-for-tat actions were bringing the two largest economies in the world closer to a no-holds barred trade war.
“We’ve been strongly supportive of the Trump administration doing this investigation [into China’s trade policies],” said Josh Kallmer, Senior Vice President for Global Policy at the Information Technology Industry Council that represents the interests of the tech world.
“That said…tariffs are not the remedy,” said Kallmer, pointing out that the consumer would be the one caught in the crosshairs.
But Larry Kudlow, President Trump’s new chief economic advisor, managed to quell most of the market worry after saying the Trump’s tariff announcement could be just a negotiating tactic Wednesday. "It's part of the process,” he said. "You know, there are carrots and sticks in life, but he is ultimately a free trader.
For full interview, [click here](https://cheddar.com/videos/market-movers-boeing-drags-down-index-on-concerns-of-trade-war).
About 780,000 pressure washers sold at retailers like Home Depot are being recalled across the U.S. and Canada, due to a projectile hazard that has resulted in fractures and other injuries among some consumers.
Europeans upset with Elon Musk still aren’t buying his electric cars, adding to a long losing streak for his company.
President Donald Trump has fired one of two Democratic members of the U.S. Surface Transportation Board to break a 2-2 tie ahead of the board considering the largest railroad merger ever proposed.
Ford is recalling more than 355,000 of its pickup trucks across the U.S. because of an instrument panel display failure that’s resulted in critical information, like warning lights and vehicle speed, not showing up on the dashboard.
Nvidia reported a 56% increase in second-quarter revenue and a 59% rise in net income compared to a year ago.
The Rev. Al Sharpton is set to lead a protest march on Wall Street to urge corporate America to resist the Trump administration’s campaign to roll back diversity, equity and inclusion initiatives. The New York civil rights leader will join clergy, labor and community leaders Thursday in a demonstration through Manhattan’s Financial District that’s timed with the anniversary of the Civil Rights-era March on Washington in 1963. Sharpton called DEI the “civil rights fight of our generation." He and other Black leaders have called for boycotting American retailers that scaled backed policies and programs aimed at bolstering diversity and reducing discrimination in their ranks.
President Donald Trump's administration last month awarded a $1.2 billion contract to build and operate what's expected to become the nation’s largest immigration detention complex to a tiny Virginia firm with no experience running correction facilities.
Netflix CEO Ted Sarandos claims audiences don't want to watch Netflix movies in theaters, but that seems not to be the case recently.
Chipmaker Nvidia is poised to release a quarterly report that could provide a better sense of whether the stock market has been riding an overhyped artificial intelligence bubble or is being propelled by a technological boom that’s still gathering momentum.
Cracker Barrel said late Tuesday it’s returning to its old logo after critics — including President Donald Trump — protested the company’s plan to modernize.
