Dow Falls nearly 200 points after retaliation by China following Chengdu consulate order

Top Line

The market plummeted on Friday, as big tech stocks fell, ordering the closure of its consulate in Chengdu, China, after retaliating after the closure of its consulate in Houston earlier this week. Won too.

Key Facts

The Dow Jones Industrial Average was down 0.7%, nearly 200 points on Friday, while the S&P 500 fell 0.6% and the Tech-Heavy Nasdaq Composite fell 0.9%.

The market further exacerbated US-China tensions, reaching a low point after Beijing ordered the closure of the US consulate in Chengdu on Friday.

China’s foreign ministry claimed that the order was a “legitimate and necessary” response to the Trump administration’s decision to close the Chinese consulate in Houston earlier this week.

Meanwhile, large tech stocks continued to decline and the market declined for the second consecutive day: Facebook, Apple and Microsoft all fell.

Intel shares rose more than 16% after the company beat earnings and revenue estimates in the previous quarter, which indicated it expects further delays in next-generation chips.

Serious quote

Bespoke Investment Group said in a recent note, “Although traders could not get very big technology last week, they got away very fast this week.

amazing facts

For the first time since 2011, Spot Gold traded over $ 1,900. Investors turned to safe-haven assets to continue uncertainty amid the coronovirus epidemic and US-China tensions.

What to see

Republicans in Congress are expected to unveil a new coronovirus relief plan early next week. With an additional $ 600 a week in federal unemployment benefits to expire by the end of July, legalists in Washington are scrambling to agree on the next round of coronovirus assistance. The next round of stimulus likely includes a second round of incentive checks, more funding for PPP’s small business loans, and funding for schools in the fall.

Further studies

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Dow raises 350 points after another 1.4 million Americans file for unemployment (Forbes)

Dow Rise renews US-China tension, Pfizer vaccine deal between 150 points (Forbes)

We’ve seen how the stock market performed against every US president since Truman – and the results will surprise you (Forbes)