Markets brace for shaky Friday after trade war fears pound stock prices
Fears of a trade war slammed stocks Thursday and could keep investors sidelined Friday, as the market looks set on a course to retest the February lows.
"I guess I wouldn't buy here. I want to understand more about what's going on, but for long term equity holders I would not use this as a reason to sell," said Jack Ablin, CIO at Cresset Wealth Advisors.
Ablin and others said the market could be first heading to test the 200-day moving average, which it did not break in the February selloff. On the S&P 500, that is currently 2,584, about 60 points from Thursday's close. The February low was another 50 points below that.
President Donald Trump announced Thursday that the U.S. would put tariffs on $50 billion of Chinese goods, and trade officials have recommended 10 high tech industries be specifically targeted.
The sell off also follows the Fed's latest rate hike Wednesday and new forecasts for more hikes next year and the following year.
"That's the current trend, but it doesn't take away from the fact that monetary policy is tightening and that typically doesn't end well," said Peter Boockvar, chief market analyst at Bleakley Financial Group. "Overall the headwinds grow, the deeper we get into monetary tightening." He also said the S&P could test the 200-day moving average sometime this quarter.
U.S. industries vulnerable to potential Chinese countermeasures were hit hard, as investors reacted to concerns the tariffs could lead to a trade war that would hurt corporate profits and the global economy.
https://www.msn.com/en-us/money/markets/markets-brace-for-shaky-friday-after-trade-war-fears-pound-stock-prices/ar-BBKzWeX?ocid=spartandhp
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20,645.50
-946.49(-4.38%)
Personally, I have nothing in the casino but my gawd, the Nikkei is down over 900 pts.!
Fun day tomorrow on Wall Street is my guess!
