An Unending Trade War Leaves Wall Street Jittery

Industry:

News Published in The New York Times


Investors are dealing with a painful new reality: The trade war between the United States and China could last indefinitely.

That anxiety spread across the stock markets on Monday, as investors around the world tried to divine the potential fallout to economic growth and corporate profits. Bonds and commodities, too, flashed warnings of a slowdown.

The stock losses have brought an end to a recent calm that had settled over Wall Street. For months, investors had assumed that the trade war, a major hazard for the global economy, would end soon. Just weeks ago, the S&P 500 reached a record high.

That illusion has been shattered, as concerns mount about slowing growth and rising costs. China said on Monday that it would increase tariffs on nearly $60 billion of goods, in response to a similar move last week by the Trump administration.
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