Dow dives nearly 800 points on fears of economic slowdown
lucky-photographer/iStock(NEW YORK) — The Dow Jones Industrial Average plunged on Tuesday amid fears of an economic downturn, led by disappointing bank earnings and unresolved trade issues between the U.S. and China.
The Dow closed 799 points or 3.1 percent lower at 25,027. Shares of major U.S. banks also took a dive with Citigroup, Morgan Stanley and Capital One bottoming out at 52-week lows. Toll Brothers also gave weaker-than-expected guidance for 2019, citing a slowing housing market.
“A few moving parts, people think there is not ‘substance’ behind Trumps tweets about tariffs so the markets are giving back the gains from before the G20 meeting,” Michael Matousek, head trader at U.S. Global Investors told ABC News.
On Tuesday, President Trump has declared himself a “Tariff Man” in tweeting about the state of progress with China, doubling down the threat to raise tariffs on Chinese goods if a deal isn’t solidified.
Over the weekend, Trump had boasted that he and China’s President Xi Jinping had reached a trade deal, although details remained unclear into late Tuesday. Senior administration officials also had trouble articulating any specifics about the deal in press briefings.
The president tweeted optimistically about the chances for a deal with China, writing “President Xi and I want this deal to happen, and it probably will.” But if a deal doesn’t happen, he reminds his followers, “I am a Tariff Man.”
“MAKE AMERICA RICH AGAIN,” Trump tweeted.
This is a developing story. Please check back for updates.
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