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Dow Bounces Back After Its Worst Day Since January

The Dow Jones Industrial Market is an indicator of the market and its ups and downs are indicative of a turmoil faced by it. Recently, trade relations between the US and China escalated to some degree as China decided to retaliate to the policies of the US against them and it resulted in a fall in the Dow. However, over the course of the day it recovered and eventually closed by adding 207.06 points to take the total to 25,532.05. The SPX also rose to 2834.41 and the Nasdaq Composite Index stood at 7734.9 after all of them showed some growth eventually.

It all started last week when the US decided to increase the tariff from 10% to a whopping 25% on $200 billion for all the imports made from China which infuriated China. They decided to hit back by escalating tariffs on the $60 million worth exports from the US. There were no agreements between the countries at the end though so the issue is still hanging by the thread, posing an impending threat to both the economies massively. However, there seems to be a beacon of light at the end of the tunnel as President Trump said that once a delegation trip is made to China in the coming 3-4 weeks, a decision will be taken and he is confident that it is going to be one that is going to benefit both the parties.

He also took to Twitter to tell that his respect for the Chinese President Xi Jinping is unparalleled and a trade deal between them seems to be the only logical thing to do for the progress. Meanwhile, Trump has asked the Federal Reserves to cope up with the financial turmoil being faced due to the spat in trade by lowering the interest rates as much as possible.