U.S. equity indexes opened sharply lower Tuesday after President Donald Trump raised doubts a trade deal with china will occur quickly.
The Dow Jones industrial Average plunged 297.06 points to 27,4852.98 while the S&P 500 fell 32.27 points to 3,081.60 and the Nasdaq Composite Index dropped 113.04 points to 8,454.95.
Speaking in London at the NATO conference, Trump said: “A China trade deal is dependent on one thing — do I want to make it?” Then he added: “I have no deadline, no. In some ways, I think it’s better to wait until after the election if you want to know the truth. But I’m not going to say that. I just think that.”
Trump’s comments came less than two weeks before a Dec. 15 deadline for more tariff increases on chinese goods.
“The run higher seen in major benchmarks in the past few months has been built in no small part on questionable foundations with near incessant positive noises on the U.S.-China trade front seemingly the major catalyst,” wrote David Cheetham, chief market analyst at XTB Limited.
The U.S. received some good news on the holiday sales front.
Adobe projected Cyber Monday sales of at least $9.2 billion, a 16.9% jump from last year. smartphones accounted for almost one-third of Cyber Monday sales of $3 billion, a 46% surge from the prior year.
“Retailers unlocked sales earlier to combat a shorter shopping season, while continuing to drive up promotion of the big branded days including Black Friday and Cyber Monday,” said John Copeland, head of marketing and consumer Insights at Adobe. “Consumers capitalized on deals and ramped up spending, especially on smartphones, where activity increased on days when shoppers were snowed or rained in.”
The Trump administration has threatened to levy tariffs of up to 100% on $2.4 billion of French goods, including cheese, champagne, housewares and handbags, in retaliation for France’s digital services tax that would penalize U.S. tech firms.
Bruno Le Maire, the French minister of the economy, said the threat was “unacceptable” and that the european Union would challenge it.
Overnight in Asia, markets finished mixed. The Hang Seng fell 0.2% while Japan’s Nikkei-225 dropped 0.64% and China’s Shanghai Composite rose 0.31%
European markets were all lower with the FTSE 100 down 1.86% while Germany’s DAX edged down 0.04% and France’s CAC 40 dropped 1.23%.
Crude oil futures fell 0.43% to $55.72 per barrel and Brent crude slipped 0.53% at $60.60. Gold futures gained 0.93%.
The euro was up 0.02% to $1.08 while the pound sterling rose 0.45% at $1.2999.