Up over 150 points as of 1 pm Eastern Time Friday, the Dow is looking to snap an eight-day losing streak precipitated by trade tensions between the United States and China. It’s also looking to avoid a nine-day losing streak not seen since 1978.
The S&P 500 is also up 0.42 percent with energy, materials and telecommunications in the forefront. Chevron and Verizon are leading the S&P rally with Chevron up 2.71% and Verizon up 2.46%.
Related: Dow Slips Over 150 Points Amidst More Trade Concerns
Small cap stocks are also helping the overall health of the market with the Russell 2000 hitting highs this week in conjunction with tech as reflected by the NASDAQ Composite Index.
“As bad as it may seem to some people, this is more of a re-allocation of resources,” said JJ Kinahan, chief market strategist at TD Ameritrade. “The Russell 2000 and Nasdaq both hit all-time highs this week. I think investors are wise to be cautious and re-evaluate these stocks and how they would be affected if these tariffs go through. That being said, market conditions are still pretty good.”
The market has been marred by the tariff-for-tariff battle between the U.S. and China after U.S. President Donald Trump imposed a 25 percent tariff on over $50 billion worth of Chinese goods last week. In turn, the Chinese Commerce Ministry responded with a 25 percent tariff on $34 billion worth of U.S. goods.
The tariff sparring continued this past Tuesday as the Dow opened on the down side by 400 points in the latest trade threat with the Trump administration proposing an additional round of tariffs on over $200 billion worth of Chinese goods. Trump now turned his attention to Europe as his latest trade threat involves a 20 percent tariff on European imports.
Based on the Tariffs and Trade Barriers long placed on the U.S. and it great companies and workers by the European Union, if these Tariffs and Barriers are not soon broken down and removed, we will be placing a 20% Tariff on all of their cars coming into the U.S. Build them here!
— Donald J. Trump (@realDonaldTrump) June 22, 2018
Thus far, the market isn’t batting an eye with this latest spat other than the NASDAQ being down 0.4%.
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