Dow futures fall 450 points after Treasury labels China a currency manipulator. If China devalues the yuan even more, it could prompt the United States to raise more tariffs, escalating the trade war even further. That could stall the global economy — bad news for stocks.
From CNN Business’ David Goldman in New York. 8/5/2019
Here we go again…
Dow futures fell 450 points Monday evening, pointing to another lousy day on Wall Street Tuesday, after the US Treasury Department labeled China a currency manipulator.
S&P 500 futures tumbled 1.7%, and Nasdaq futures fell 1.9%.
Wall Street investors worried that Treasury’s designation could open the door to China further devaluing its currency. One reason it had not taken action to lower the value of the yuan in the past was to avoid the manipulator label.
If China devalues the yuan even more, it could prompt the United States to raise more tariffs, escalating the trade war even further. That could stall the global economy — bad news for stocks.