Skip to content

CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. Please ensure you fully understand the risks involved. CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. Please ensure you fully understand the risks involved.

Dow Jones rebounds from losses despite US-China tariffs

Wall Street erased its losses from earlier in the trading day amid the US-China trade turmoil.

US trader after Wall Street recovers from US-China trade tariffs Source:Bloomberg

Wall Street has recovered after a volatile day when the Dow Jones was down by as much as 300 points. The Dow Jones rebounded after the US imposed tariffs on Chinese-made goods.

How did US- China tariff news affect Wall Street?

The first round of US-China tariffs that totaled $200 billion will be increased from 10% to 25% and caused the Dow Jones to plummet by as much as 200 points. Despite the current trade impasse, Wall Street recovered after news reports that US Treasury Secretary, Steve Mnuchin, said that the current trade talks with Chinese officials were ‘constructive.’

Will Uber hurt the Dow Jones in the long run?

Though Uber was the most anticipated IPO in years, it underdelivered on its first day on Wall Street. Uber stock sold below its IPO price of $45 when it launched. Uber chief executive officer, (CEO), Dara Khosrowshahi, said that patience is key with Uber’s share price.

‘My reaction (to the share price) is if we build and build well, shareholders will be rewarded. We’re certainly not measuring our success over a day, it really is over the years,’ said Khosrowshahi.

While many investors may be bullish on Uber stock, Robert Johnson, professor of finance at Creighton University, isn’t convinced that the rideshare company is not worth its high $75 billion valuation.

‘The business is unprofitable, new entrants can enter the market, there is potential regulatory risk, and it is very price sensitive. What is there to like about this opportunity?’ said Johnson.

The volatility of the US-China trade negotiations and the underwhelming performance of Uber stock will cause investors to be wary. After Wall Street’s volatile week, investors will closely monitor the Dow Jones to see what happens next with Uber share price and US-China trade relations.

This information has been prepared by IG, a trading name of IG Markets Limited. In addition to the disclaimer below, the material on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients. See full non-independent research disclaimer and quarterly summary.

Seize your opportunity

Deal on the world’s stock indices today.

  • Trade on rising or falling markets
  • Get one-point spreads on the FTSE 100
  • Unrivalled 24-hour pricing

See opportunity on an index?

Try a risk-free trade in your demo account, and see whether you’re on to something.

  • Log in to your demo
  • Try a risk-free trade
  • See whether your hunch pays off

See opportunity on an index?

Don’t miss your chance – upgrade to a live account to take advantage.

  • Get spreads from one point on the FTSE 100
  • Trade more 24-hour indices than any other provider
  • Analyse and deal seamlessly on smart, fast charts

See opportunity on an index?

Don’t miss your chance. Log in to take your position.

Live prices on most popular markets

  • Equities
  • Indices
  • Forex
  • Commodities


Prices above are subject to our website terms and agreements. Prices are indicative only. All share prices are delayed by at least 15 minutes.

Prices above are subject to our website terms and agreements. Prices are indicative only. All shares prices are delayed by at least 15 mins.

Plan your trading week

Get the week’s market-moving news sent directly to your inbox every Sunday. The Week Ahead gives you a full calendar of upcoming economic events, as well as commentary from our expert analysts on the key markets to watch.


For more info on how we might use your data, see our privacy notice and access policy and privacy webpage.

You might be interested in…

Find out what charges your trades could incur with our transparent fee structure.

Discover why so many clients choose us, and what makes us a world-leading provider of spread betting and CFDs.

Stay on top of upcoming market-moving events with our customisable economic calendar.