Dow Loses More than 200 Points on Trump Threats Against Russia

On Wednesday, the U.S. market fell with the Dow Jones Industrial Average logging a lost of more than 200 points due to tweets from U.S. President Donald Trump against Russia regarding a possible missile strike in Syria. “Russia vows to shoot down any and all missiles fired at Syria.” stated Trump’s tweet. The tweet also included a warning for Russia as the said missiles will be coming.

Geopolitical and Trade Tensions

Wall Street shares have been pressured over the past couple of weeks due to the possible trade war between the United States and China due to the tariffs imposed by the two countries against the imports of one another. While market fears subsided momentarily last week, most U.S. stocks were pressured by Trump's recent statement as well as political tension in other countries.

The tariffs which began with those imposed by Trump on aluminum and steel imports was followed by more tariffs which included $50 billion worth of tariffs on Chinese imports. China responded to this recently with also a $50 billion tariff on U.S. imports. The discourse between the two countries has raised concerns and fears from the market of a possible trade war which has pushed the movement of the U.S. dollar and stocks in the U.S. market as well.

Trading activity in Asia also declined over the past week brought by the decline in Wall Street stocks followed by news of Trump’s long-time lawyer office being raided by the FBI increasing the uncertainty regarding the U.S. Economy.

Despite this, Asian and U.S. shares recovered earlier this week following a statement from Chinese president Xi Jinping of his plans in implementing measures to keep China’s economy open further. 

DJIA

The Dow rallied earlier this week by almost 500 points during Tuesday’s trading session following the statement from Chinese president Xi Jinping regarding changes in the Chinese economy as well as lower tariffs on imports which calmed market fears of a possible trade war between the United States. Xi’s statement was followed by a tweet from Trump stating his thanks and praised Xi for his words regarding the tariffs.

However, Trump’s most recent tweet threatening and warning Russia regarding a possible missile strike against Syria has pushed Wall Street stocks to new lows with the S&P500 and the Nasdaq Composite recording declines as well. The threat from Trump follows after reports of Russian planning to shoot down American missiles directed at Syria’s direction.

The Dow Jones which closed 218.55 points lower at the end of trading session to settle at 24,189.45 with Boeing being one of the biggest losers during the day. The Nasdaq and the S&P 500 both lost 0.4% and 0.6% respectively.

See also: U.S. Stocks Trade Higher Prior to Inflation Data

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