QUOTATION S&P 500 AND DOW JONES TODAY:
- The US stock indexes fell sharply in Friday’s session following the intensification of the tariff war between Washington and Beijing.
- China announced that it will retaliate against the protectionist actions of the Trump administration and that it will tax US imports valued at $ 75 billion starting next September 1.
- The S&P 500 lost 2.59% while the Dow Jones fell 2.37% at the close of the last trading day of the week.
The main stock indexes of the United States said goodbye to the week with strong falls plagued by the escalation of the commercial war between Washington and Beijing.
At the close of Friday’s session, the S&P 500 fell 2.59%, falling 76 points to the level of 2847, while the Dow Jones lost 2.37%, which backed down 623 units to the 25629 edge
The stock market crash occurred in a context of greater risk aversion after China warned that it will retaliate against the White House protectionist actions and that it will impose tariffs on US products valued at $ 75 billion from the first of September (remember that on August 1 Trump had announced the implementation of tariffs on Chinese imports valued at 300 billion dollars).
Trump responded aggressively to this measure and said that 25% tariffs on Chinese imports valued at 250 billion dollars will increase to 30% and that 10% levies on products valued at 300 billion dollars will rise to 15% from from October 1.
The intensification of disputes between the two powers could aggravate the risks facing the global economy and could unleash a recession in the United States in 2020 as many economists estimate, particularly after the reversal of the yield curve in the 2-10 stretch. years (US curve).
A recessive environment would have negative implications for corporate profits and could cause a 10 to 15% drop in the stock market, even if the Federal Reserve undertook an aggressive flexibility cycle to counteract economic weakness.
S&P 500 TECHNICAL ANALYSIS
The falls of the S&P 500 have been slowed by a long-term upward trend line extended from the lows of August near 2845/2850 points. If this support is violated in the short term, it is possible to observe a decrease of greater magnitude to the next technical floor in 2777 (monthly minimum). Beyond this level, the following support is located in the area of 2730/2720, where the minimum of March and June 2019 converge.
On the rise, the first resistance under consideration lies in the region of 2935/2945. A break in this area would put the 3030 points into play.