The stock markets stumbled while investors retreat from American assets

On Monday, Wall Street put investors all over the world more skeptical in US investment, which is proposed by many economists due to the trade war of US President Donald Trump and his constant criticism of the Federal Reserve.

S&P sank 500 2.4 per cent in another erasure. The index extracted 16 percent less than its record two months ago.

The Dow Jones industrial average decreased 971 points, or 2.5 percent, while the losses in Tesla and NVIDIA helped withdraw the NASDAQ compound by 2.6 percent.

In Canada, the S&P/TSX index fell 0.76 percent today.

Perhaps more worrying, US government bonds and the value of the US dollar were also sank as prices declined across the American markets. It is an extraordinary step because the value of the American treasury and the dollar have been strengthened historically during nervous rings. This time, though, Experts say It is the policies directly from Washington that cause fear and may weaken its reputation like some of the safest investments in the world.

Trump continued his hard talk about global trade on Monday, as economists and investors continue to say that the tough proposed definitions may cause stagnation if they are not retracted. The US talks with Japan last week failed to reach a quick deal that could reduce customs tariffs and protect the economy, and considered a “test issue”, according to Terry Wizmann, a strategy in Macquari.

“The golden rule for negotiation and success: whoever has gold offers the rules.” He also said that “businessmen who criticize the definitions are bad in business, but they are really bad in politics,” the same in all hats.

Trump recently focused on China, the world’s second largest economy, who was also continuing its discourse. On Monday, China warned other countries against concluding trade deals with the United States “at the expense of China’s interest”, as Japan, South Korea and others are trying to negotiate the agreements.

“If this happens, China will never accept it and will be taken firmly in mutual measures,” China said in a statement.

Also hanging on the market are concerns about Trump’s anger at the Federal Reserve Chairman Jerome Powell. Last week, Trump criticized Powell, not to reduce interest rates soon to give the economy more juice.

The Federal Reserve was resisting to reduce speed rates very quickly because it does not want to allow inflation to reuse after that
Almost all the way to its target is 2 percent of more than nine percent three years ago.

Trump also Powell indicated in the social media post On Monday afternoon, when a slowdown in the American economy was published, “unless it is too late, the main loser, reduces interest rates, now.”

He is likely to send a step from Trump to shoot Powell, a set of fear through financial markets. While Wall Street loves lower rates, to a large extent because it enhances stock prices, the biggest anxiety is that the less independent Federal Reserve will not be effective in maintaining inflation under control. Experts are concerned that such a move may weaken, if not killing, the reputation of the United States as the most safe place in the world to maintain money.

All columns that strike uncertain at the Financial Market Center means that some investors say they have to rethink
Basics of how to invest.

“We can no longer induce previous trends or rely on long -term assumptions of the anchor governor,” said strategic experts at the Blackrock Investment Institute in a report. “The distinction between the allocation of tactical and strategic assets is unclear. Instead, we need to re -evaluate the long -term path continuously and be dynamic with the allocation of assets where we learn more about the future state of the global order.”

This, in turn, can push investors outside the United States to maintain more money in their home markets, according to the strategists led by Jean -Bouvin.

Large technology leads decrease

At Wall Street, the major technology shares in driving indexes helped decrease the profit reports that followed it later this week.

Tesla sank 5.7 percent. The shares of the electric car fell to half of its record in December because of the criticism that its share price is very high and that its brand has become very intertwined with Elon Musk, which leads the US government’s efforts to reduce spending.

Chipmaker Nvidia has decreased by 4.5 percent from a third consecutive decrease after revealing that the US export limits on chips to China can hurt its results in the first quarter by $ 5.5 billion. They led another survey in Wall Street, and 92 percent of the shares inside the S&P 500.

Among the few who discover financial services and Capital One Financial, which ascended after the US government’s approval of its proposal merged. The discovery of 3.6 percent increased, while Capital One added 1.5 percent.

Gold also rose to correct its reputation as a safe investment, unlike others.

In the bond market, the US Treasury’s revenues decreased the shortest period, as investors expect the Federal Reserve to reduce the main interest rate over the eve of this year to support the economy.

But long -term returns have increased with doubts about the United States’ position in the global economy. The return on the cabinet increased for 10 years to 4.40 percent, up from 4.34 percent at the end of last week and about four percent earlier this month. This is a big step for the bond market.

Meanwhile, the value of the US dollar against the euro, the Japanese yen, the Swiss franc and other currencies fell. The Canadian dollar was also traded for 72.36 cents, up from 72.17 cents on Thursday.