Donald Trump ordered American companies to get out of China with their production last week as many of us already know. However, Apple jumped the gun and led the way with the movement by acting first. What happened though was a stock market nightmare to some investors however – Dow Jones ended up dropping over 600 points, making an extremely frightening drop of 2.4% on the markets.
Nasdaq however, also paved the way in dropping 3 percent, and S&P 500 ended up dropping to 2.6 percent. All closely tied to Dow’s market, they ended up causing the Dow market to actually drop more than four percent. Apple ended up dropping their shares more than four percent as well, and Nvidia and Broadcom both dropped about 5 percent, making the tech world market also crash in the process.
One of the things that is certain is that there is no definite set of rules between the Chinese government and the United States government regarding the trade war between the two countries. The trade war has definitely done one thing though, which is to cause the point of inflation to be approximately two percent, as it is told by the Federal Reserve Chairman Jerome Powell during his speech from a banking symposium conference in Wyoming earlier on Friday August 23rd.
It has also been reported that many officials don’t know what grounds, legality, or authority the President of the United States thinks he has in order to force companies himself to not go through China, as literally everything has to be supported and backed by Congress in the American government.