Fears of tariffs and a potential global trade war have jostled U.S.
stocks over the past few months, but there is a sense among investors
that the market is taking the drum beat of rhetoric and statements more
in stride.
In the latest salvo, U.S. President Donald Trump announced hefty
tariffs on $50 billion of Chinese imports on Friday, and Beijing
threatened to respond in kind.
But even as the developments threatened to ignite a trade war between the world's two largest economies, the equity market largely shrugged it off. The benchmark S&P 500 index .SPX ended down only 0.1 percent on Friday.
That paled compared to losses earlier in the year that were sparked by fears of a U.S.-China trade war that would be detrimental to economic growth.
“The market has gotten reasonably comfortably numb to this tariff stuff,” said Chuck Carlson, chief executive officer at Horizon Investment Services in Hammond, Indiana. “They are becoming more accustomed to this being a first foray and negotiating tool.”
The U.S. Customs and Border Protection is to begin collecting tariffs on an initial tranche of 818 Chinese product categories on July 6.
Later in March, the S&P 500 tumbled 2.1 percent on another day of apparent escalating U.S.-China tensions.
So far, Trump has taken little action beyond tariffs of 25 percent on steel and 10 percent on aluminum on imports from China, the European Union and other countries.
But even as the developments threatened to ignite a trade war between the world's two largest economies, the equity market largely shrugged it off. The benchmark S&P 500 index .SPX ended down only 0.1 percent on Friday.
That paled compared to losses earlier in the year that were sparked by fears of a U.S.-China trade war that would be detrimental to economic growth.
“The market has gotten reasonably comfortably numb to this tariff stuff,” said Chuck Carlson, chief executive officer at Horizon Investment Services in Hammond, Indiana. “They are becoming more accustomed to this being a first foray and negotiating tool.”
The U.S. Customs and Border Protection is to begin collecting tariffs on an initial tranche of 818 Chinese product categories on July 6.
Later in March, the S&P 500 tumbled 2.1 percent on another day of apparent escalating U.S.-China tensions.
So far, Trump has taken little action beyond tariffs of 25 percent on steel and 10 percent on aluminum on imports from China, the European Union and other countries.
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