As I pointed out in Tuesday’s post the China tariff row and its driving down the stock market had little legs despite the 760 point loss on Monday.
I stated in Tuesday’s morning post that the currency devaluation — which is how China was dealing with tariffs by cheapening their currency — means no appreciable rise in prices for goods sold in America.
As I concluded my Tuesday morning post on why the yuan devaluation was actually a good thing for the markets:
US equities will rebound over this week. I’ll chalk it up to most trading desks had lead traders off on vacation and the algos took over the selling. Just throw in a few Fed chief Jerome Powell considering another rate cut headlines and we should be all the way back by late Wednesday or Thursday morning.
Well the low on the Dow Jones industrial average so far this week was 25,556. By Thursday at noon the Dow was trading at 26,300 or so up from the Monday opening bell level of 25,993.
The knee-jerk reaction on Monday was just that. And so goes another chapter in the Tariff Tiff.