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Resilient Dow Clings to 27,000 Despite Trump's 'Locked & Loaded' Threat, Crypto Coins News

Resilient Dow Clings to 27,000 Despite Trump's 'Locked & Loaded' Threat, Crypto Coins News


donald trump, dow jones, oil” width=”720″>

The Dow took losses on Monday, but the stock market bellwether demonstrated its resilience in the face of Trump’s “locked and loaded” threat. | Source: Nicholas Kamm / Ho / AFP

The Dow might not extend its eight-session winning streak into the new week, but the stock market bellwether is proving its resilience following a historic disruption to the global oil industry.

Dow Risks Snapping 8-Day Winning Streak

Wall Street’s major indices all incurred losses at the opening bell, but the market’s pullback wasn’t nearly as substantial as investors feared whenfutures trading openedon Sunday evening.

TheDow Jones Industrial Averagefell 89. 92 points at the open, settling at 27, 129. 60 for a loss of 0. 33%.

dow jones industrial average chart” width=”1060″>
The Dow slid on Monday following eight straight winning sessions . | Source: Yahoo Finance

The (S&P) declined 13 . 65 points or 0. 45% to 2, 993. 74. The energy sector surged 3. 68%, offsetting losses in all ten remaining primary sectors.

TheNasdaqposted the worst decline, falling 52. 92 points or 0. 65% to 8, 123. 79 Trump’s Locked & Loaded Threat Doesn’t Faze Wall Street

Stock markets worldwide flinched after adrone attack in Saudi Arabiaupended the global energy supply. Oil prices spiked, safe-haven assets like goldtrended up, and equities grappled with the sudden injection of volatility that threatened to stop the Dow, S&P 500, and Nasdaq from allsetting fresh all-time highs.

President Trump did his best tostabilize the US marketby authorizing the release of oil from the country’s strategic petroleum reserve and expediting the approval of new oil pipelines.

However, he also introduced a potential geopolitical risk, tweeting that the US military is “locked and loaded”to respond to the attackers and is coordinating with Saudi Arabia to determine the appropriate course of action.

Saudi Arabia oil supply was attacked. There is reason to believe that we know the culprit, are locked and loaded depending on verification, but are waiting to hear from the Kingdom as to who they believe was the cause of this attack, and under what terms we would proceed!

– Donald J. Trump (@realDonaldTrump)September 15, 2019

Why the Saudi Oil Attack Hasn’t Crushed the Dow Jones

There are two reasons why the US stock market’s losses have been relatively muted in the first session after the brutal attack on Saudi Arabia’s oil production infrastructure.

First, economists anticipate that the direct impact on US economic growth will belimited. While consumers might gripe aboutrising gas prices, the decline in Saudi oil exports will benefit the US energy industry. Just last year, the US briefly became anet exporter of oilfor the first time in decades.

Second, the biggest loser, other than Saudia Arabian national oil companyAramco(which might be forced toshelve its IPO), appears to beChina– the largest importer of Saudi oil.

Already beset with a slowing economy made worse by US tariffs, China must also wrestle withskyrocketing oil prices. Further still, theWall Street Journalreports that the oil supply drop makes Beijing’s chief weapon against US tariffs – devaluing the yuan – even riskier.

Consequently, when Chinese officials fly to Washington next month for the next round of face-to-face trade negotiations, they’ll have a much weaker hand than most analysts expected.

That’s good news for Wall Street bulls who hope to see Presidents Trump and Xi shake hands on a trade deal before next year presidential election.

Clickherefor a live Dow Jones Industrial Average chart.

Last modified (UTC): September 16, 2019 2: 51 PM

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