Amid this week's escalation of a North American trade war, the stock market has been sending a clear signal: Stop doing this.
Stocks rise and fall for a wide variety of reasons, of course, but this week's downward spiral was largely driven by one man: President Donald Trump. Trump's announcement on Monday of new 25 percent tariffs on all imports from Canada and Mexico caused the markets to drop instantaneously. The drop continued on Tuesday as Trump vowed in an address to Congress that he'd impose even more tariffs, and over the past two days even as the White House retreated. By the end of the day on Thursday, Trump had postponed tariffs on all goods from Canada and Mexico that comply with the trade deal he negotiated during his first term.
"That move effectively walked back much of the original plan. But the market still sold-off, with uncertainty mounting over the long-term policy," CNBC reported, noting that the S&P 500 was down 3.6 percent for the week, the Dow Jones Industrial Average was down nearly 3 percent, and the Nasdaq composite was down 4.1 percent heading into Friday morning.
