By CCN: A volatile Dow Jones Industrial Average lurched toward a triple-digit setback on Tuesday as the clock continued to tick on President Trump’s high-stakes gamble that threatening to slap new tariffs on hundreds of billions of dollars of Chinese imports will force Beijing to sign a trade deal.
Dow Dives as Investors Ignore Warren Buffett’s Warning
The stock market took a massive step down at the opening bell, and by 9:43 am ET the Dow had lost 213.01 points or 0.81%. The DJIA last traded at 26,225.47. The S&P 500 and Nasdaq posted comparable declines, sinking 0.81% to 2,908.73 and 0.84% to 8,055.17.
On Monday, the Dow plunged as much as 471 points but made a stunning recovery ahead of the closing bell, ultimately ending the session at 26,438.48 for a loss of 66.47 points or 0.25%. The S&P 500 declined 0.45% to 2,932.47, and the Nasdaq fell 0.5% to 8,123.29 as the stock market grappled with Trump’s trade war ultimatum.
Some analysts, most notably billionaire Warren Buffett, laughed off the stock market’s hand-wringing, alleging that investors who sold in response to the alarming headlines were just being melodramatic.
Clock Ticks as Stock Market Counts Down to New Tariffs
Nevertheless, Wall Street remained apprehensive about the US-China trade deal on Tuesday, as strategists digested US Trade Representative Robert Lighthizer’s claim that the Trump administration would raise tariffs at 12:01 am ET on Friday.
“Over the course of the last week or so, we’ve seen an erosion in commitments by China, I would say retreating from commitments that have already been made in our judgment,” Lighthizer said.
Treasury Secretary Steven Mnuchin, who had been among the loudest trumpeters in the Trump administration’s trade deal progress parade, revealed that the state of the negotiations had suddenly gone “substantially…