Stocks fell sharply Wednesday, following Asian and European markets overnight as the U.S.-China trade war rumbles on.
The U.S. ten-year Treasury bond yield fell to a 20 month low and crude oil prices fell to their lowest level since March, while the U.S. dollar and gold rose.
Investors view the plunge in bond yields as a sign global economic growth is slowing as the trade war begins to disrupt supply lines and raise prices for companies and consumers, with the full impact of American tariffs yet to be felt.
|I:DJI||DOW JONES AVERAGES||25207.93||-139.84||-0.55%|
|I:COMP||NASDAQ COMPOSITE INDEX||7574.410796||-32.94||-0.43%|
The U.S. and China have imposed tariffs on billions of dollars’ worth of each others imports since the start of 2018, undermining business confidence and potentially disrupting complex global production chains.
In the latest move, Chinese state media this week raised the possiblity of limiting the export of rare earth minerals which are key to the manufacture of high technology and are used in the production of mobile phones, memory chips and rechargeable batteries. China supplies about 80 percent of the world’s rare earth minerals. Semiconductor makers in particular would be affected by a ban on such exports.
|JPM||JP MORGAN CHASE & CO.||108.11||-0.41||-0.38%|
In commodities markets, U.S. West Texas Intermediate crude oil fell 2.6 percent overnight to $57.55 per barrel, while gold prices and the U.S. dollar edged higher.