U.S. Stocks Edge Higher Despite Trump Tariff Warning; Crypto Top-Ten Experiences Shake Up
U.S. stocks pulled ahead on Tuesday, as investors shrugged off calls by President Trump for additional tariffs on Chinese goods. Cryptocurrencies faltered after a solid start to the week as bitcoin SV made its debut.
Stocks Finish Higher
Equities pulled ahead in the final hour of trading, with the S&P 500 Index registering gains of 0.3% to close at 2,682.20. Seven of 11 primary sectors contributed to the gains, led by the defensive consumer staples and utilities categories. Healthcare and the much smaller real estate sector also notched solid gains.
The Dow Jones Industrial Average advanced 108.49 points, or 0.4%, to 24,748.73. Verizon Communications Inc. (VZ) and Walgreens Boots Alliance (WBA) were the biggest contributors.
The technology-focused Nasdaq Composite Index finished flat at 7,082.70.
Trump Threatens Additional China Tariffs
U.S. President Donald Trump told The Wall Street Journal on Monday that he plans to move ahead with harsher tariffs on Chinese goods, lowering the prospect of an imminent trade deal later this week. China had requested that the president hold off on raising tariffs on $200 billion worth of U.S.-bound experts scheduled to come into effect Jan. 1. Trump not only said that was “highly unlikely” but also threatened to tax China-made Apple products.
Trump and Chinese counterpart Xi Jinping will meet on the sidelines of the G20 Summit in Buenos Aires, Argentina later this week to negotiate a new free trade agreement. Investors had initially hoped that the summit would result in a new pact being achieved, but U.S. Commerce Secretary Wilbur Ross dashed those hopes earlier this month.
“If we don’t make a deal, then I’m going to put the $267 billion additional on” at a tariff rate of either 10% or 25%, Mr. Trump told WSJ.
Crypto Recovery Loses Luster
The crypocurrency market suffered a fresh selloff on Tuesday, as bitcoin and its altcoin peers posted big intraday losses. The combined market capitalization of all coins reached a low of $118 billion, just $3 billion shy of a new 14-month low. At the time of writing, the overall market cap was worth 123 billion, according to CoinMarketCap.
Markets recovered in the latter half of the day, though bitcoin’s price remained firmly capped below $3,800. XRP declined 1.4% to $0.3499 and Ethereum lost 2% to trade at $107.
In terms of market cap rankings, there has been considerable movement within the top ten recently. Stellar is back at no. 5 after it overtook EOS, which has fallen roughly 87% from its peak. Litecoin has fallen back to the no. 8 just behind Tether (USDDT).
Bitcoin SV, which emerged out of the bitcoin cash hard fork, has also entered the top-ten with a market cap of roughly $1.7 billion. In doing so, it pushed Monero out of the top-ten.
Disclaimer: The author owns bitcoin, Ethereum and other cryptocurrencies. He holds investment positions in the coins, but does not engage in short-term or day-trading.
Featured image courtesy of Shutterstock.