04.05.2020 S&P 500 Daily Analysis

04.05.2020 S&P 500 Daily Analysis

S&P 500 is trading at $2,830.71 (-2.81%) as the conflict between the US and China has heightened fears of another trade war which will affect the recovery of the global economy from the pandemic. The stock market is down as Trump`s administration attempts to remove the industrial supply chain from China by imposing these new tariffs.  Keith Krach, undersecretary for Economic Growth, Energy, and the Environment of the US said,  "We’ve been working on [reducing the reliance of our supply chains in China] over the last few years but we are now turbo-charging that initiative." In 2010, China overtook the US as the world`s top manufacturing country and by 2018 China was responsible for 28% of global output. The pandemic highlighted how much the supply chain was dependent on China, many large companies from around the world have invested a lot in Chinese manufacturing.