![]() Steel shares also have been jostled, as investors weigh benefits from protective measures against fears a trade war will undermine global demand.Īuto investors have also been whipsawed by trade policy. Industrials dropped 0.25 percent on Friday, worse than the broader index’s decline. The S&P 500 industrial sector, which includes multi-national companies such as plane maker Boeing and heavy machine manufacturer Caterpillar, has lagged the market since trade war concerns flared in March. To be sure, certain areas of the market remain sensitive to rhetoric about trade. “There is a growing awareness of how the president tries to do business.” “The market is starting to get accustomed to the president, the way the president negotiates, the way the president tries to prove his point,” Carlson said. The market has grown more used to Trump’s style, especially when it comes to international affairs, investors said. So far, Trump has taken little action beyond tariffs of 25 percent on steel and 10 percent on aluminum on imports from China, the European Union and other countries. Later in March, the S&P 500 tumbled 2.1 percent on another day of apparent escalating U.S.-China tensions. On March 1, the S&P 500 declined 1.3 percent when Trump announced plans for hefty tariffs on steel and aluminum imports to protect U.S. “I think people fear the tariffs and the uncertainty about it, but think, ‘OK, this is just another negotiating point.'” “It’s kind of the cry-wolf syndrome,” said Peter Tuz, president of Chase Investment Counsel in Charlottesville, Virginia. Customs and Border Protection is to begin collecting tariffs on an initial tranche of 818 Chinese product categories on July 6. “They are becoming more accustomed to this being a first foray and negotiating tool.” “The market has gotten reasonably comfortably numb to this tariff stuff,” said Chuck Carlson, chief executive officer at Horizon Investment Services in Hammond, Indiana. That paled compared to losses earlier in the year that were sparked by fears of a U.S.-China trade war that would be detrimental to economic growth. The benchmark S&P 500 index ended down only 0.1 percent on Friday. But even as the developments threatened to ignite a trade war between the world’s two largest economies, the equity market largely shrugged it off.
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