Everything was looking so awesome this morning, until Commerce Secretary Wilbur Ross told a group in Davis that China’s 2025 Technology Plan was a “direct threat” to the US, sparking another round of protectionist-fear-driven selling in stocks. From Bloomberg:
Some note, however, that the Bloomberg headlines hit minutes after the stock dip was already underway, so it may be an exercise in goalseeking a reason for the drop.
Trannies were already under pressure from United’s drop, but Ross’ comments pushed The S&P red briefly…
The move in stocks has also been assigned to the fact that 10Y Yields are back at 2.66%, triggering fears that TINA is over and the cost of funding buybacks is soaring.
Interestingly, no reaction in bonds or the dollar (which both continued their trends lower in price).
