The stock market rebounded a bit last week after Donald Trump announced that he’d been on the phone with China, working to end his disastrous trade war. But it turned out no such phone calls existed, and last night, Trump’s new tariffs on Chinese goods went into effect. China quickly retaliated with moves of its own. Now we’re getting a look at just how much of a stock market bloodbath this could be.
The stock market is closed on Monday due to Labor Day, so we’ll have to wait until Tuesday morning to see the official market reaction to Trump’s new tariffs. But when the Dow Futures were posted on Sunday evening, let’s just say that it was immediately clear what investors think of this nonsense.
Dow Futures are already down more than 150 points this evening, and dropping quickly. We can’t make any predictions on how much further they’ll fall, and whether or not they’ll end up rebounding before the market officially reopens. Don’t take investing advice from us one way or the other. But if this ugly trend continues, let’s just say that Tuesday could be profoundly ugly.
Meanwhile, Donald Trump still has yet to say anything thus far today about his new tariffs. Instead he’s spent most of the day giving out dangerously wrong information about Hurricane Dorian, and ranting about actress and activist Debra Messing.
Bill Palmer is the publisher of the political news outlet Palmer Report