The Dow Jones closed at 133 points on May 5 as investors are still uncertain about the overall economic sentiment amid U.S. and China tensions triggered by President Donald Trump.
The U.S. stock futures in overnight trading also went flat after two days of pointing to positive sessions in the Dow Jones.
On May 5, along with the rise of the Dow Jones Industrial Average, the S&P 500 rose 0.9%, and the tech-powerhouse Nasdaq Composite gained 1.13%.
As investors weigh the economic consequences, it seems that President Donald Trump wants to continue in re-opening businesses as planned. He has also fueled more tensions against China.
Trump pushing to re-open economy despite death risk
With the recent news that Gilead is donating its remdesivir supply to the U.S. government, in the hopes of indirectly saving the Dow Jones, investors may see this going down the drain.
In an exclusive interview with ABC World News Tonight came out showing that President Donald Trump was very vocal about re-opening the economy prioritizing money over the safety of U.S. citizens.
Pres. Trump tells @ABC News' @DavidMuir "it's possible there will be some" deaths as states ease coronavirus restrictions, acknowledging it was the choice the U.S. faces to reopen the economy. https://t.co/BIjHgtg1Tg pic.twitter.com/PplSfsdglO
— ABC News (@ABC) May 5, 2020
The interview also sparked outrage among its critics for commenting that the President also lacked empathy for its citizens. This may spark a negative sentiment on the Dow Jones as well as across the U.S. markets.
A new “cold war” spurs between the U.S. and China
Former deputy director of the National Economic Council Clete Willems senses U.S. and China tensions are getting worse caused by the coronavirus as he told CNBC’s Squawk Box Asia:
“I know people get uncomfortable with the terminology, but I do think we have to be honest and call this what it is and this is the start of a new Cold War and if we’re not careful, things could get much, much worse.”
Also, the president’s actions continue to receive criticism as the administration keeps firing up propaganda instead of focusing on the COVID-19 pandemic.
In a recent editorial by the state media Global Times, it was mentioned that Secretary of State Mike Pompeo’s accusation that the coronavirus originated in a Wuhan lab was “groundless.”
As developments continue to be grim, it seems that the Dow Jones and the rest of the U.S. markets might turn to shambles at this rate.
Featured image courtesy of Gage Skidmore/Flickr