Continuing trade tariff issues remain on the minds of investors as the new week starts.
As of 7:22 AM Monday, the Dow Jones Industrial Average futures dropped 101 points, putting the market at a potential 81 point opening when the opening bell rings at 10 am. The other key stocks, NASDAQ and S&P 500 also opened lower.
Last week, stocks slipped 558 points for the week, deleting the week’s gains. Leading the declines were major tech companies, including those of Facebook, Apple, Amazon, Netflix and Alphabet (Google’s parent company.)
Driving the declines were concerns about the ongoing trade feud with China. On top of the effects of tariffs slapped on goods from the U.S. and China, the arrest of Huawei CEO Meng Wanzhou over possible violations of U.S. sanctions is further dividing the two nations. China has asked the U.S. ambassador to come to Beijing to protest the arrest of the head of one of China’s largest companies.
U.S. President Donald Trump slapped the tariffs on Chinese goods claiming the trade deals between U.S. and China were unfair to U.S. workers. Economists are concerned that the tariffs would raise costs dramatically for U.S. companies and would cause a recession due to the price shock from the tariffs.