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.

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.

IGA, may distribute information/research produced by its respective foreign affiliates within the IG Group of companies pursuant to an arrangement under Regulation 32C of the Financial Advisers Regulations. Where the research is distributed in Singapore to a person who is not an Accredited Investor, Expert Investor or an Institutional Investor, IGA accepts legal responsibility for the contents of the report to such persons only to the extent required by law. Singapore recipients should contact IGA at 6390 5118 for matters arising from, or in connection with the information distributed.

The information/research herein is prepared by IG Asia Pte Ltd (IGA) and its foreign affiliated companies (collectively known as the IG Group) and is intended for general circulation only. It does not take into account the specific investment objectives, financial situation, or particular needs of any particular person. You should take into account your specific investment objectives, financial situation, and particular needs before making a commitment to trade, including seeking advice from an independent financial adviser regarding the suitability of the investment, under a separate engagement, as you deem fit.

Please see important Research Disclaimer.

Take a position on indices

Deal on the world’s major stock indices today.

  • Trade the lowest Wall Street spreads on the market
  • 1-point spread on the FTSE 100 and Germany 30
  • The only provider to offer 24-hour pricing

Live prices on most popular markets

  • Forex
  • Shares
  • Indices
Sell
Buy
Updated
Change
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
Sell
Buy
Updated
Change

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

Sell
Buy
Updated
Change
-
-
-
-
-
-
-
-
-
-
-
-
China 300
-
-
-
-

Prices above are subject to our website terms and agreements. Prices are indicative only. All shares prices are delayed by at least 20 mins.

The Momentum Report

Get the week’s momentum report sent directly to your inbox every Monday for FREE. The Week Ahead gives you a full calendar of upcoming key events to monitor in the coming week, as well as commentary and insight from our expert analysts on the major indices 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 CFDs.

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