The slowdown of the Chinese economy has seen US Stock futures fall in shortened session.
The US markets were closed on Monday in honor of Martin Luther King and below was how the benchmarks fared:
Dow Jones Industrial Average futures
S&P 500 futures ESH9, -0.68% fell 15.10 points to 2,656.50. YMH9, -0.70% dropped 150 points to 24,538 while Nasdaq-100 NQH9, -0.87% fell 48.50 points, to 6,743.
On Friday, the stock market closed higher with the Dow Jones Industrial Average DJIA, +1.38% rising 336.25 points and ending at 24,706.35 for a weekly gain of 3%. The Nasdaq Composite COMP, +1.03% rose to 7,157.23 and closed the week with a 2.7% gain. The S&P 500 index SPX, +1.32% added 1.3% to 2,670.71 gaining 2.9% for the week.
China’s decline in economic growth is undoubtedly telling on the markets. For many years, China’s economy has managed to survive recessions even ranking second on the list of the world’s strongest economies. However, 2018 wasn’t such a great year for China as their GDP rose by 6.6%. This is the slowest growth rate the country has recorded in almost three decades.
The economic downturn in China coupled with the ongoing trade dispute with the US has contributed to the country’s woes. The trade tension between China and the U.S began when the later accused Beijing of stealing technology from companies. This prompted the U.S government to impose high tariffs on China’s imports.
Although both parties met sometime in January, they are yet to resolve the issue. President Trump on Saturday tweeted that the reports about easing tariffs on China were incorrect. Nonetheless, he stated that talks with China were going well.
The global trade tensions will affect global growth this year according to the International Monetary Fund. It forecasts that growth will drop from last year’s 3.7% to 3.5%. It also predicts that U.S. growth this year will remain at 2.5%.