Wall Street Falls 2% as U.S.-EU Trade War Kicks Off over Airbus Dispute, VIX Jumps 11%!
Wall Street fell 2% as U.S.-EU trade war kicked off over Airbus Dispute while Trump's impeachment dampened the market. VIX jumped 11%!
Wall Street is facing another plummet in the morning session on October 2, 2019, from all the negativity, especially the renewed tension between the U.S. and EU after World Trade Organization (WTO) has approved the U.S to impose tariffs on $7.5 billion of European goods over Airbus dispute.
As of 11:31 in New York, Dow Jones plunged over 504.69 points or 1.90%, S&P 500 fell 1.86% and Nasdaq slumped 1.70% while VIX jumped 11.69%.
The spark of this new trade war occurred after arbitrators from the WTO granted the U.S. President Donald Trump’s administration the right to impose tariffs on European imports, claiming that EU (Germany, France, Spain, and UK) handed over illegal subsidies to Airbus.
Cecilia Malmstrom, EU trade commissioner, vowed to retaliate if the U.S. impose tariffs on EU. “If the U.S. decides to impose WTO authorized countermeasures, it will be pushing the EU into a situation where we will have no other option than to do the same,” said Cecilia in the statement.
Moreover, things are also getting more intense regarding Trump’s impeachment after the president, yet again, attacked Democrats via twitter.
