US Stock Market Plunges 800 Points Amid Continuing Trade War With China, Fears Of Slowdown

(@FahadShabbir)

US Stock Market Plunges 800 Points Amid Continuing Trade War With China, Fears of Slowdown

NEW YORK (UrduPoint News / Sputnik - 15th August, 2019) The Dow Jones plunged by 800 points on Wednesday as US-China trade tensions continue to cause uncertainty and economic data from Germany and China intensified fears of an economic slowdown.

The Dow lost 3.05 percent to finish at 25,479, while Standard & Poor's 500 index dropped 86 points, or 2.93 percent, to end at around 2,841.

On August 5, the Dow Jones plummeted by more than 950 points, marking what was then the worst drop this year.

Market analysts have attributed the outcome to the US-China trade war, in particular China's decision to back away from its commitment to purchase more US agricultural products and devalue the Yuan to bellow the seven-to-one ratio with the US Dollar for the first time in a decade.

A weaker yuan could greatly neutralize the effects the United States has intended to cause by imposing tariffs on Chinese imports.

US President Donald Trump has accused China of Currency manipulation and unfair trade practices that effectively steal from US businesses and farmers, signaling that additional tariffs may be in store to overcome the yuan's devaluation.

China has requested that its state-owned companies refrain from buying US imports, according to media reports.

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