Stocks Turn Down as Trump Says He May Wait on China Trade DealPosted 12/03/2019 8:06AM CT |
The S&P 500, Nasdaq, and Dow Jones all turned lower Tuesday morning as President Trump voiced his opinion that he may want to wait until after the 2020 election to sign a trade deal with China. Trump went on to say, “In some ways, I like the idea of waiting until after the election for the China deal, but they want to make a deal now and we will see whether or not the deal is going to be right…in some ways I think it is better to wait until after the election, if you want to know the truth.”
It should be known, the markets already down on Monday after a long rally and Trump’s comments seemed to have just made things worse. Trade deal speculation is one of the biggest influences we have on the markets today as they seemed to shift daily based on speculation of whether a deal may or may not get done. Speculation for most of the year had been expecting a “phase one” trade deal to be done by the end of 2020, but that seems unlikely now. We are only about 2-weeks out from Trump’s self-imposed December 15th tariff hike and there doesn’t appear to be a deal in site.