Investors start the week with a sour mood. Trade tensions are again the chief reason. But what is new about the trade tumult, you ask? Sharp comments over the weekend from China.
And there is also a growing realization that the Trump Administration is comfortable waging trade wars on multiple front including China, Mexico, India. The White House even considered raising tariffs on aluminum from ally Australia, according to the New York Times,
The administration is trying to make the case that the rules of economics don't apply in the Trump economy. Acting Chief of Staff Mick Mulvaney told Fox News that contrary to almost every serious analysis, consumers will not feel tariffs, as seen in the clip below:
For major stock averages, June is beginning the same way May ended. For the month, the Dow fell 6.1%, the S&P 500 lost 5.8% and the Nasdaq fell 7.4%.
It was the worst May for the Nasdaq since 2010 and the Dow's weekly losing streak — six down weeks in a row — is the longest since June 2011.