Dow Drops 248 Points Amid Fears of a Global Trade War
Stocks finished lower on Wednesday, March 14, as investors debated the prospects of a global trade war following the firing of Rex Tillerson as U.S. secretary of state and reports of new tariffs targeted specifically at China.
As earnings season has ended, the latest developments in Washington are even more prominent for investors, said Brad McMillan, chief investment officer at Commonwealth Financial Network in Waltham, Massachusetts.
"Certainly, from an economic standpoint, the potential effect of tariffs continues to rattle through the markets," he said.
Trump has already imposed tariffs on steel and aluminum imports as well as on solar panels and washing machines, sparking threats of retaliation from some trade partners.
Boeing Co, which investors say may be particularly vulnerable to retaliation, tumbled 2.5 percent,leading the losers on the Dow.
But what this does indicate is that some of the more economically saavy people in the country do realize that trade wars do more harm than good for the U.S.
And ironically, traditionally its been the Republicans who have been for free trade (letting market forces rather than the government determine things)--- and its been the Democrats who have been for more intervention in the market (i.e. the Dems have been the ones supporting more regulation and more tariffs!)
trade war? LOL
trump and the USA win again.
translation? they need our markets more than we need their production