Dow Jones boosted yesterday’s 9 points or 0.04 percent to 24,884 points, while the S & P 500 grew 0.26 percent to 2.728 points, while the Nasdaq index was 0.56 percent to 7.372 points.
The growth of these indexes during regular trading supported the investor’s hopes that Trump would not impose customs duties on imports of steel and aluminum, but that its announcements were only tactics in trade negotiations.
But it was uncertain, as it was, despite the calls by leading Republicans in the US Congress to reject the proposal, Trump said that he would remain in the plan of introducing customs and that “trade wars are not so bad”.
“The market does not like uncertainty, it wants to hear whether it will be like this or that. If our biggest fears are confirmed, the market could fall even more than last week. Also, the market could grow if it turns out there will be no trade wars” , said Chris Zaccarelli, director of the Independent Advisor Alliance.
Last Thursday, leading Wall Street indices fell sharply after Trump announced customs duties on 25 steel imports, and aluminum at 10 percent, as it caused fears of rising inflation in the US, increased operating costs of companies in certain sectors and outbreaks trade wars.
But at the beginning of this week, the market made up part of these losses, as investors believed that it was only Trump’s threat due to the US trade deficit and that after the customs announcement, negotiations on how to resolve the situation would follow.
However, after closing the market, the S & P 500 index sank more than 1 percent, announcing a drop in stock prices at the start of Wall Street trading on Wednesday.