China Calls for a Cease Fire
As last week drew to a close, trade war hostilities were heating up. On Friday morning, China announced a series of additional tariffs in retaliation for the U.S.’s latest volley of tariffs announced earlier this month. Late Friday, President Trump fired back, tweeting that existing tariffs on some $250 billion of Chinese imports would rise from 25% to 30% on October 1st and that other planned levies on $300 billion of goods taking effect September 1st and December 15th would rise as well. Stocks fell sharply on Friday with the Dow shedding more than 2% and the Nasdaq down 3%. U.S. bond markets staged a massive rally, inverting the yield curve as the 10-year U.S. Treasury note traded as low as 1.44% in overseas markets early Monday.