As a result, the Dow Jones index, which includes shares of thirty leading US corporations, wrote back 2.37 percent, the broader S&P 500 index fell by 2.59 percent, and the Nasdaq Composite technology market index fell by as much as a full three percent. All in an atmosphere in which Powell signaled a possible reduction in interest rates. The head of the Fed in the American mountain resort of Jackson Hole said that the central bank will take appropriate steps to maintain economic growth in the United States.
Lukáš Kovanda, the chief economist of the Czech fund, therefore believes that in other circumstances the shares would fall much more sharply. In addition, it assumes that new news markets have not been fully absorbed. "Shares fell until the very end of Friday's trade. They will probably continue to fall on Monday. This will not only reduce American markets, but also Asian and European markets, "says Kovanda. Donald Trump's retaliatory response to Chinese tariffs came after the stock market closed, so the markets have not yet counted.
According to Kovanda, Trump, who is becoming increasingly nervous, will probably become the biggest threat to the global economy in the upcoming US elections because of the huge uncertainty caused by his unforeseen behavior. "Companies simply cannot plan, invest and employ well enough when their forecasts can" kick out "the only tweet of the American president. Of course, Trump is trapped in a trap he has set himself – the economist added.
The trade conflict between the United States and China intensified on Friday when Beijing announced its intention to introduce new tariffs on US goods. Trump first responded by calling on US companies to look for alternatives to doing business in China (including moving production from China to the US), and then announcing a new tariff increase.