Thanks to taxes imposed on the United States’ and Chinese goods by governments insisting upon igniting a trade war, U.S. companies shelled out a record amount of money in October. This is actually highly disturbing news, as the stock market continues to fall and the interest rates continue to climb higher.
Thanks to lingering anxiety about the ongoing trade war and rhetoric between the United States and China, futures indicated that the Dow would open over 400 points lower this morning. Couple that with the expectation that the sell-off will continue, the economic recession could very well be in the beginning stages.
The Dow futures gained 460 points shortly after United States President Donald Trump and Chinese president Xi Jinping vowed to temporarily hit the pause button on their economically disastrous trade war which has been ongoing since March. Both the U.S. and China agreed to hold off on additional tariffs on each other’s goods at the start of the new year to allow for talks to continue for 90 days.