US Stock Market Overview – Stocks Slide on US-China Trade ConcernsThe VIX surges as stock drop
Stock prices traded on the defensive but settled offer their lows. Ahead of the opening bell, futures were pointing to a higher open but comments from President Trump in London at a NATO conference put the markets on its heels. The markets now appear to be concerned that without a phase-one trade deal, new tariffs could come into effect on December 15. This follows Monday’s softer than expected US ISM manufacturing data which weighed on riskier assets. Most sectors were lower, led down by energy, real-estate bucked the trend.
President Trump suggested a trade war with China could continue well into next year while also threatening new tariffs on both France, Brazil and Argentina. The President said there was no-deadline for the trade deal and a deal would be completed when he was ready.
The statement alerted investors, who had expected the US and China to move to a phase-one deal that would have taken future tariffs from coming into existence. The move appears to factor in Mr. Trump’s threat to expand tariffs beyond imports from China. Trump administration has proposed new levies on goods from France, Brazil and Argentina.
The House Releases Impeachment Report
The House on Tuesday publicly released a new report accusing President Donald Trump of soliciting Ukraine to interfere in the 2020 election. Democrats accused the President of soliciting Ukraine for his benefit and obstructing the impeachment inquiry in the House of Representatives. The 300-page report alleges a quid pro quo scheme where the US President requested an investigation into former Vice President Joe Biden and his son Hunter. The impeachment inquiry is poised to enter the next phase of the impeachment probe, where the House Judiciary Committee is expected to draft formal articles of impeachment against Trump.