Wall Street recovers from sharp losses sparked by China tariffs

If the conflict occurred only between the US and China Việt Nam would have a good chance to export to the US

If the conflict occurred only between the US and China Việt Nam would have a good chance to export to the US

Stocks made a roaring comeback on Wednesday, bouncing off steep losses stemming from China's announcement of new tariffs on USA goods. It's too early to call this a trade war, but it seems investors aren't going to stick around to find out if it turns into one.

The Dow Jones industrial average lost 459 points Monday, a 1.9 percent loss, after falling by more than 700 points hours before closing.

Now a price-weighted composite of Apple, Alphabet, Microsoft, Amazon.com and Facebook - five of the six largest- capitalized stocks in the S&P 500 - is down close to 12 percent over the past four calendar weeks and on track for the worst such decline in its six-year history.

The Shanghai Composite Index lost 1.1 percent to 3,129.55 points and Tokyo's Nikkei 225 dropped 0.9 percent to 21,199.98.

Shares of Amazon traded 0.7 percent stronger as of 1.55pm in NY, having fluctuated between gains and losses earlier in the day, as investors tried to assess the impact of US President Donald Trump's latest criticising tweets about the company. In 1.34pm trading, the Standard & Poor's 500 Index added 0.5 percent. Brent crude, used to price worldwide oils, slid $1.13, or 1.6 percent, to $68.21 a barrel in London.

If during the coming reporting season companies warn that those heady targets might not be met, that could spell immediate trouble for already wobbly USA stocks. Including pork, other meats, fruit, and steel pipes. However, if bulls fail to adequately defend this trend line, then the market decline could get ugly.

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Oil fell below $68 a barrel, reversing an earlier rally, as a rise in Russian production and concern about a U.S.

"There has been a lot of rhetoric surrounding trade wars for some time now, but the transformation of these threats into actions in recent days is alarming and is clearly roiling markets", said David Cheetham, chief market analyst at XTB. The euro rose to $1.2283 from $1.2272. These tech titans account for more than $3.3 trillion in market capitalization, or more than 14 percent of the S&P 500's total value. Samsung Electronics fell 2.02 percent.

Bullish investors may have put the fear of a trade war behind them with the announcement that the US and China will be sitting down to negotiate a compromise over a few of the key trade issues.

The S&P 500 Index slumped after its first quarterly retreat since 2015, with volumes 17% below average. Amazon, under fire again from President Trump via Twitter due to its big size and negative impact on mom-and-pop retailers, fell 5.2%. But investors see a bigger fight looming over U.S. President Donald Trump's approval of possible higher duties on $50 billion of Chinese goods in response to complaints Beijing steals or pressures foreign companies to hand over technology.

Brent crude, used to price global oils, rose 16 cents to $67.80 in London. Despite its recent losses, Amazon stock is still up about 18 percent in 2018.

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