US futures rebound after Wall Street's worst day of 2019

Trader James Coffey works on the floor of the New York Stock Exchange Monday Aug. 5 2019. U.S. stocks nosedived in early trading on Wall Street Monday as China's currency fell sharply and stoked fears that the trade war between the world's

"Any hopes of a quick resolution with China are fading quickly", Ryan Detrick, senior market strategist at LPL Financial, said Monday.

The S&P 500 dropped 2.9 percent which means it is headed for a six-day losing streak and potentially its worst day of the year. The Chines bank then blamed the fall in its currency fall on Trump, issuing a statement saying the "unilateralism and trade protectionism measures and the imposition of increased tariffs on China", as reported by The New York Times. Markets in Hong Kong, Sydney and Seoul also retreated.

China's move to fix the yuan at a slightly stronger rate and White House economic adviser Larry Kudlow's comment that President Donald Trump was planning to host a Chinese delegation for further talks in September allayed fears of a further escalation in the trade war.

China, meanwhile, said it could impose additional tariffs on "newly purchased U.S.agricultural products after August 3". The Nasdaq fell 278 points, or 3.5%, to 7,726.

"The fall in US equities in particular is an interesting development, because it highlights how they are no longer benefitting from a view that trade wars are "easy to win", Capital Economics said in a note on Monday. Bond yields are tumbling.

"Worry about global trade flows, as a stronger United States dollars rumbles through the real economy and U.S".

"In recent days, China has taken concrete steps to devalue its currency, while maintaining substantial foreign exchange reserves despite active use of such tools in the past", US Treasury Secretary Steven Mnuchin announced on Monday afternoon.

Futures up: Dow 0.85%, S&P 0.86%, Nasdaq 1.03%.

Sydney's S&P-ASX 200 retreated 2.6% to 6,468.30 and markets in Taiwan, New Zealand and Southeast Asia also declined.

Meat producer Tyson Foods jumped 9.1% for the biggest gain in the S&P 500 after it reported profits that were better than Wall Street expected.

The escalations within the trade war between the world's largest economies are rattling traders already unnerved a couple of slowing world economic system, falling USA company income and probably too-weak inflation.

The S&P 500 dropped 87.31 points, or 3%, to 2,844.74 for its worst loss since December, when the market was wrapped in the throes of recession fears.

At 9:50 a.m. ET, the Dow Jones Industrial Average was down 505.65 points, or 1.91%, at 25,979.36, the S&P 500 was down 59.19 points, or 2.02%, at 2,872.86.

They responded Monday by dumping stocks and shoveling money into USA government bonds, which are considered ultra-safe.

The yield on the 10-year Treasury note fell to its lowest level since 2016, down to 1.72% from 1.85% late Friday. Brent crude, the worldwide standard, fell $1.35, or 2.2%, to $60.54. Both are unusually large moves.

Technology stocks led the gains in a reversal of Monday's slump, when they bore the brunt of the market sell-off that pushed USA indexes 3% lower. It not exclusively relies upon on Chinese language factories to assemble its iPhones, however China can be the one nation apart from america that accounts for greater than 10% of its gross sales. Benchmark U.S. crude lost 64 cents to $55.20 per barrel. Wholesale gasoline fell 6 cents to $1.72 per gallon. Brent crude oil, the global standard, fell $2.08 to $59.81 a barrel.



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