Stocks Stabilize as U.S.-China Tensions Persist

Photo Credit: JUSTIN LANE/EPA-EFE/REX/Shutterstock
June 20, 2018
Updated 9mo ago

By Michael Teich

Investors may be concerned that current trade tensions will escalate into a full-blown trade war, but such fears could be overblown, said JPMorgan global market strategist Alex Dryden.

“It’s not as bad as it seems,” he said in an interview with Cheddar Wednesday. “Cooler heads will prevail.”

The Dow Industrials marked a 7-day losing streak Wednesday, the longest losing stretch the index has seen since March 2017. While the threat of a potential trade war has been lingering for weeks on Wall Street, it was most recently ignited when President Donald Trump said he was considering taxing an additional $200 billion worth of Chinese goods.

Dryden said the U.S.’s end game is to open up the Chinese economy, but if the U.S. does ultimately find itself in a trade war, “the consumer is the end loser,” said Dryden.

“It drives up inflation and drives up prices.”

For the full interview, click here.