Dow Jones average: Why is the Dow Jones DOWN today? Index falls 150 points in one day

The Dow Jones Industrial Average, or simply the Dow, fell more than 150 points on Wednesday. The US stock market index indicates the value of 30 large, publicly owned companies and how they have traded in the market during various periods of time. But why is the Dow down today?

Why is the Dow Jones Industrial Average down today?

The Dow fell on Wednesday as investors faced key testimonies on the US-China trade war and a host of geopolitical issues.

The market index fell to 160.32 points, or 0.6 percent at its worse, to 25,897.66, while the S&P 500 has declined 0.6 percent to 2777.73, and the Nasdaq Composite has dropped 0.8 percent to 7489.30.

US Trade representative Robert Lighthizer hinted in Congress on Wednesday the US-China trade relations are not yet certain, and added any agreement would need to be more than just purchased by China.

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Mr Lighthizer was testifying in front of the House Ways and Means committee.

He warned “much work still needs to be done” and said it’s “too early” to predict the outcome of recent negotiations between the two super powers.

In Mr Lighthizer’s testimony before Congress, he said: “Let me be clear.

“Much still needs to be done both before an agreement is reached and, more importantly, after it is reached, if one is reached.

“If we can complete this effort — and again, I say’ if’ — and can reach a satisfactory solution to the all-important and outstanding issue of enforceability, as well as some other concerns, we might be able to have agreement that does turn the corner in our economic relationship.

“We can compete with anyone in the world, but we must have rule, enforced rules, that make sure market outcomes and not state capitalism and technology theft determine winners.”

This suggest the US-China trade deal is further away than first hoped.

Mr Lighthizer also added China can’t simply address the US’s concerns by agreeing to buy more US goods, and that any deal must be properly enforceable as previous deals haven’t been complied with.

This was not received well in the markets, and can explain why the Dow is still down 145 points at 25,912 at the time of writing.

The US Trade representative’s testimony comes as US President Donald Trump pushed back an early March deadline for the nation to finally strike a trade deal with China.

Mr Trump has cited “significant progress” for pushing back the deadline.

Wall Street has worried about increasing trade tensions between the nations since last year as investors struggles to cope with the potential impact of tariffs on the global economy.

source: express.co.uk