The trading session is quite intense for investors of the US stock market. After the Asian session, the SP500 fell to 1.5%, resuming a weekly low of 2881.
However, the level recovered to 2900. The market panic is caused by the controversial news background that is being created on financial markets in anticipation of the next round of negotiations between the US and China.
As Bloomberg News mentioned previously, China plans to conclude a deal and specifically proposed to increase the purchase of agricultural products from American farmers by 50%. According to Beijing, the United States caused damage to China after the US Department of State expansion. The blacklist of Chinese companies includes Chinese AI startups.
On the eve of the negotiations, the United States decided to ban the issuance of visas for Chinese officials. Such actions have reduced the likelihood of an improvement in the trade negotiations between the United States and China. If the countries do not agree among themselves, the US stock market expects another wave of sales, as a result of which the SP500 is at risk of falling to 2800. It is not a fact that the new monetary stimulus from the FRS, which will be launched before the end of 2019, won’t help the market.