Dow Jones rebounds from losses despite US-China tariffs
Wall Street erased its losses from earlier in the trading day amid the US-China trade turmoil.
Wall Street has recovered after a volatile day when the Dow Jones was down by as much as 300 points. The Dow Jones rebounded after the US imposed tariffs on Chinese-made goods.
How did US- China tariff news affect Wall Street?
The first round of US-China tariffs that totaled $200 billion will be increased from 10% to 25% and caused the Dow Jones to plummet by as much as 200 points. Despite the current trade impasse, Wall Street recovered after news reports that US Treasury Secretary, Steve Mnuchin, said that the current trade talks with Chinese officials were ‘constructive.’
Will Uber hurt the Dow Jones in the long run?
Though Uber was the most anticipated IPO in years, it underdelivered on its first day on Wall Street. Uber stock sold below its IPO price of $45 when it launched. Uber chief executive officer, (CEO), Dara Khosrowshahi, said that patience is key with Uber’s share price.
‘My reaction (to the share price) is if we build and build well, shareholders will be rewarded. We’re certainly not measuring our success over a day, it really is over the years,’ said Khosrowshahi.
While many investors may be bullish on Uber stock, Robert Johnson, professor of finance at Creighton University, isn’t convinced that the rideshare company is not worth its high $75 billion valuation.
‘The business is unprofitable, new entrants can enter the market, there is potential regulatory risk, and it is very price sensitive. What is there to like about this opportunity?’ said Johnson.
The volatility of the US-China trade negotiations and the underwhelming performance of Uber stock will cause investors to be wary. After Wall Street’s volatile week, investors will closely monitor the Dow Jones to see what happens next with Uber share price and US-China trade relations.
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