Secretary of State Mike Pompeo on the national security concerns over China’s military, U.S. trade talks with China and China’s potential retaliation because of U.S. tariffs.
Stocks fell sharply Wednesday, with the Dow Jones Industrial Average seeing its lowest levels since February and the S&P 500 index fell to its lowest levels since early March, as the U.S.-China trade war rumbles on without sign of a resolution anytime soon.
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The U.S. ten-year Treasury bond yield fell to a 20 month low and crude oil prices fell to their lowest level since March, while the U.S. dollar and gold rose.
Stocks fell to their lows of the day after a statement from Special Counsel Robert Mueller, but it was unclear if anything he said weighed on the market, according to traders. “If we had had confidence that the president clearly did not commit a crime, we would have said so,” Mueller said.
Investors view the plunge in bond yields as a sign global economic growth is slowing as the trade war begins to disrupt supply lines and raise prices for companies and consumers, with the full impact of American tariffs yet to be felt.
The U.S. and China have imposed tariffs on billions of dollars’ worth of each others imports since the start of 2018, undermining business confidence and potentially disrupting complex global production chains.
MORE FROM FOXBUSINESS.COMHUAWEI TECHNOLOGIES IS AN INSTRUMENT OF THE CHINESE GOVERNMENT: SECRETARY OF STATE MIKE POMPEOHOMEBUYERS COULD FEEL MORE PINCH FROM CHINA TARIFFSCHINA COULD TARGET CRUCIAL RARE EARTH MINERALS AS TRADE WAR ESCALATES
In the latest move, Chinese state media this week raised the possiblity of limiting the export of rare earth minerals which are key to the manufacture of high technology and are used in the production of mobile phones, memory chips and rechargeable batteries. China supplies about 80 percent of the world's rare earth minerals. Semiconductor makers in particular would be affected by a ban on such exports. Chips stocks such as Qualcomm and Nvidia were lower.
Bank shares also fell along with bond yields, with longer dated debt yields now below short term interest rates. Citigroup and Bank of America both fell sharply.
TickerSecurityLastChange%ChgAAPLAPPLE INC.177.66-0.57-0.32%QCOMQUALCOMM INC.65.74+0.37+0.57%NVDANVIDIA CORPORATION140.68-2.65-1.85%JPMJP MORGAN CHASE & CO.107.71-0.81-0.75%CATCATERPILLAR INC.121.01-0.58-0.48%
In commodities markets, U.S. West Texas Intermediate crude oil fell 2.6 percent overnight to $57.55 per barrel, the lowest level in two months. U.S. crude oil prices lost 6.8 percent last week as weak demand overshadowed threats to supply from the U.S. sanctions on Iranian exports.