SPY ETF Chart 5.6.19
Futures sink after Trump escalates China tariff threat
(Reuters) – U.S. stock index futures plunged on Monday after President Donald Trump shocked investors by threatening to hike tariffs on $200 billion worth of Chinese goods, raising fears of a global slowdown and halting a relative period of calm in the markets.
S&P futures lost more than 2% overnight after the Wall Street Journal reported China was considering canceling a round of U.S. talks set for this week in the wake of Trump’s comments.
reuters.com/trump-escalates-china-tariff-threat
S&P Futures Plummet As China Said To Cancel Washington Trade Trip, All Eyes On S&P 2,890
It's only appropriate that the S&P may be about to suffer its biggest drop of the year one day after hitting a new all time high.
For those who are only now catching up, the reason why futures are tumbling is that just after 12pm ET, Trump tweeted that trade talks – which according to the White House, media leaks and Larry Kudlow would be basically concluded by next week – are instead effectively dead…
…as the current 10% tariff will spike to 25% on Friday, while an additional $325BN in goods will be subject to new trade tariffs.