- Caterpillar and Boeing drag Dow Jones lower
- Facebook, Microsoft and Google end Thursday higher
- Tesla share price drops 2.4%
On Thursday 9 August the Nasdaq managed to end higher for the seventh day in a row, while the Dow Jones and the S&P 500 both ended somewhat lower. The latter’s dip came as the index was fast approaching the record high it reached on 26 January and was probably just the result of profit taking.
In retaliation against a similar move from the Trump administration, China announced new 25% tariffs on $16bn worth of US imports from 23 August. This will affect steel products, fuel, medical equipment and motoring products in particular.
The biggest losers on the Dow Jones were trade-sensitive firms such as Caterpillar and Boeing. Energy stocks also dropped by 0.8% amid another fall in crude oil prices following reduced Chinese demand.
The S&P 500 received its biggest boost from tech stocks such as Facebook, Microsoft and Google.
Tesla’s share price, meanwhile, dropped by 2.4% as the company’s board considered Elon Musk’s proposal of taking the car manufacturer private. Musk floated the idea on Twitter earlier this week.
In spite of the relatively weak performance of US markets, the Australian stock market is expected to open mainly unchanged. The AUD/USD exchange rate, meanwhile, has gained somewhat and at the time of writing stands at $0.743.
The AUD also gained about 0.6% against the GBP to reach 57.7 pence, its highest level in nearly two months, with investors slowly starting to digest the increasing likelihood that Britain might leave the EU without a trade deal.
At the time of writing, the AUD was trading at 0.5728 against the GBP.