Overnight, Dow futures traded as much as 600 points lower; as I type the Dow’s down merely 170. The depth of last night’s lows came on news that China may all-out cancel the trade talks, in response to Trump’s Sunday tweet threatening to severely exacerbate the “trade war” (in response to China reneging on previously agreed-to terms).
This morning’s underwhelming response (although the day’s still young) to yesterday’s overwhelmingly negative tweet can be explained by news that China indeed desires to keep talks alive (kinda, per my earlier note, folding this particular hand). Whether or not its top negotiators will come to Washington this Wednesday, as previously scheduled, remains to be seen.
In the grander scheme of things, I can assure you, virtually the only scenario that allows for the economic expansion and the current bull market in stocks to extend well into the future (as general conditions presently allow) is the ultimate dispensing with tariffs, and with the notion that there’s something to be gained (economically or politically) by the outright disrupting of relations with our established trading partners.
We’ll keep you posted…