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).
The New York Times and President Donald Trump are fighting again. The news outlet said Wednesday it won't be deterred by Trump's “false and inflammatory language” from writing about the 79-year-old president's health. The Times has done a handful of stories on that topic recently, including an opinion column that said Trump is “starting to give President Joe Biden vibes.” In a Truth Social post, Trump said it might be treasonous for outlets like the Times to do “FAKE” reports about his health and "we should do something about it.” The Republican president already has a pending lawsuit against the newspaper for its past reports on his finances.
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President Donald Trump says he will allow Nvidia to sell its H200 computer chip used in the development of artificial intelligence to “approved customers” in China. Trump said Monday on his social media site that he had informed China’s leader Xi Jinping and “President Xi responded positively!” There had been concerns about allowing advanced computer chips into China as it could help them to compete against the U.S. in building out AI capabilities. But there has also been a desire to develop the AI ecosystem with American companies such as chipmaker Nvidia.
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Disney's changes to a program for disabled visitors are facing challenges in federal court and through a shareholder proposal. The Disability Access Service program, which allows disabled visitors to skip long lines, was overhauled last year. Disney now mostly limits the program to those with developmental disabilities like autism who have difficulty waiting in lines. The changes have sparked criticism from some disability advocates. A shareholder proposal submitted by disability advocates calls for an independent review of Disney's disability policies. Disney plans to block this proposal, claiming it's misleading. It's the latest struggle by Disney to accommodate disabled visitors while stopping past abuses by some theme park guests.
With a merger this big, creators, studios, and theaters all face uncertain futures. Here’s what experts are worried about and what good could come from it.
With disengagement rising and hybrid work shifting, 'Everybody Matters' author Bob Chapman explains why treating people well could define the future of work.
We sat down with Ali Furman, U.S. Consumer Markets Industry Leader at consulting firm PwC to ask what trends she garnered from the initial data this year.
