Here’s Why Stocks Suddenly Tumbled
After waffling between slight gains and losses for most of the morning, stocks have tumbled into the European close, possibly prompted by a story published by Outlook India claiming that trade talks between US and China have hit an impasse.
The drop leaves the Dow on track for its second straight weekly close in the red. And after the late-day tumble on Wednesday prompted by the Fed’s ‘transitory’ hawkishness, stocks are on track to finish lower for the second day in a row.
Minutes later, the Global Times – widely seen as an official Communist Party mouthpiece – confirmed, posting a story saying the latest round of talks wrapped up with “Fewer details about specific discussions and results.”
The GT’s involvement begs the question: Is this China putting the screws to the White House to try and secure even more concessions, now that leaked reports have clearly indicated that Trump wants a deal, no matter the cost?