Day Traders Diary

5/6/19

The major averages finish in the red, but staged a nice comeback after opening down 1.5% with the Dow falling as much as 471 points after President Trump threatened to increase China trade tariffs this Friday.

The Dow Jones Industrial Average lost 0.3%, and the Nasdaq Composite lost 0.5%. The domestically-oriented Russell 2000 managed to finish higher by 0.1%.

President Trump said on Sunday that he will increase tariffs on $200 billion of imported Chinese goods to 25% from 10%, effective Friday. An additional $325 billion of imported goods could also face a 25% tax. The news rattled equity markets around the world and catalyzed a 5.6% drop in China's Shanghai Composite.