Hello traders everywhere. The stock market reversed course Friday afternoon erasing earlier gains after reports that the White House is considering limits on U.S. investment in China, aggravating the long-standing trade dispute between the globe's two largest economies.
Trump administration officials are discussing ways to limit U.S. investors' portfolio flows into China. One of those options includes limiting all U.S. investment in China.
The DOW turned flat, erasing a gain of about 130 points after the report. The S&P 500 also reversed all of its gains to trade down -0.5% amid losses in communications services, utilities, and technology. The Nasdaq is being hit the hardest dropping -1.1%.
Shares of Alibaba, Tencent, Baidu, and other Chinese companies, in particular, plunged on the latest U.S.-China headlines, with BABA falling -6%. Those shares all trade on Nasdaq which will now post a weekly loss of over -2% joining the other major indexes with weekly losses. The DOW will lose -.3, and the S&P 500 will lose -.9% on the week.
Key Levels To Watch Next Week:
- S&P 500 (CME:SP500): 2,952.86
- Dow (INDEX:DJI): 26,704.96
- NASDAQ (NASDAQ:COMP): 7,935.57
- U.S. Dollar (ICE:DX): 97.85
- Gold (NYMEX:GC.Q19): 1,517.00
- Crude Oil (NYMEX:CL.N19): 54.38
- Bitcoin (BITCOIN:BITSTAMPUSD): 7,432.84