Wall Street Jittery Amid Tax And Trade Uncertainties

This week started off in the same way for Wall Street as the previous 7 trading sessions where investors attempted to interpret confusing and occasionally conflicting data. Although there was a GDP growth of 3.5% for the quarter, there also was a 6.7% reduction of the Dow Jones Industrial Average for the month. S&P 500 is also expected to have the worst month since February of 2009. Trump Administration critics say that the GDP could merely be a reflection of stockpiling of inventories being done by businesses prior to additional tariffs being implemented. On Monday the Commerce Department said that disposable and personal incomes rose by 0.2% each last month which is half of the previous month’s rise. Personal spending was seen to rise by 0.4% which is 0.1% less of the August number.

Wall Street Jittery Amid Tax And Trade Uncertainties

Peter Cardillo of Spartan Capital Securities said that more volatility resulting in market correction could be expected but the economy will not likely hit a tripping point leading to a downturn. Economists like Mark Hamrick said that logical adjustments will have to be made which is already beginning to show up in business activities. Survey conducted by NABE in October suggests that reports by businesses about increase in charged prices have risen at a rate which was last seen in early-2016. But in spite of corporate tax cuts, over 8 out of 10 respondents haven’t changed their investment or hiring plans. NABE also found that the greatest impact was on the US goods-producing sector.

Benjamin Page says that the currently running high point is soon going to end and if no amends are made in the future by the Congress, higher deficits could have bigger impacts. The reason behind this as economists say may be increase in deficit due to tax cuts, leading to rising rates of interest making companies doubt their investment plans. Cardillo said that if trade disputes aren’t controlled, the nation’s economy could suffer from more.

Sam Robertson

Sam is a post-graduate in Computer science and has an immense interest in following technology developments. Quite by nature, he is an football And chess player. He is responsible for handling the office staff writers and providing them with the latest updates happenings in the world of technology.

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