STREAMING NOW: Watch Now

Dow plunges over Apple's dive, China trade war fears

The stock market took a nose dive Thursday after Apple failed to meet expectations and renewed fears about a China trade war. CNN's Alison Kosik reports.

Posted: Jan 4, 2019 10:42 AM
Updated: Jan 4, 2019 10:45 AM

China has set a date for a new round of talks with the United States aimed at ending a trade war that is spooking global markets and hurting businesses.

China's Commerce Ministry said Friday that US deputy trade representative Jeffrey Gerrish would hold negotiations with Chinese officials on January 7-8 in Beijing. The White House is yet to confirm the talks.

They will be the first formal negotiations on trade between the world's two biggest economies since President Donald Trump and his Chinese counterpart, Xi Jinping, agreed to a truce at the G20 summit in Argentina last month.

US trade negotiators will "optimistically and constructively communicate with (the) Chinese delegation on the important agreements achieved by the two leaders during the meeting in Argentina," China's Commerce Ministry said in a statement, without giving further details. Officials from both countries spoke on the phone Friday, it added.

Volatile trading

Uncertainty over whether the two sides can build on the ceasefire agreed by Trump and Xi in Argentina has fueled volatile trading in global markets.

The Dow dropped 660 points, or 2.8%, on Thursday after Apple (APPL) warned it will badly miss its quarterly sales forecast because of weaker growth in China and the trade war.

White House Council of Economic Advisers chairman Kevin Hassett said in an interview with CNN's Poppy Harlow on Thursday that "a heck of a lot" of US companies will have the same problem unless a deal is struck to lift tariffs imposed by both sides last year.

China's own stock market has fallen by about 25% in the last year as investor concerns grew about the impact of the trade war on China's economy.

Markets reacted positively on Friday after the Chinese government set a date for the trade talks. China's Shanghai Composite and Hong Kong's Hang Seng Index were both up about 2%.

But if the two economic superpowers are unable to reach a lasting deal within a 90-day deadline set by their leaders, the damaging trade war could escalate further with the imposition of more tariffs on hundreds of billions of dollars of goods.

China's economy has lost momentum in the last year as the government has tried to curb risky lending. An escalating trade war would make the situation even worse.

New tensions emerge

A new strain in the US-China relationship emerged in December when Canada announced it had carried out a US request to arrest the chief financial officer of Huawei, one of China's top tech companies. The US government is seeking the extradition of the executive, Meng Wanzhou, over alleged violations of sanctions on Iran.

The arrest highlighted the intensifying clash between the world's top two economies over technology. Huawei is key to China's efforts to become a global tech powerhouse and lead the introduction of 5G wireless technology around the world.

West Lafayette
Clear
73° wxIcon
Hi: 85° Lo: 61°
Feels Like: 73°
Kokomo
Clear
76° wxIcon
Hi: 81° Lo: 58°
Feels Like: 76°
Rensselaer
Clear
73° wxIcon
Hi: 82° Lo: 57°
Feels Like: 73°
Fowler
Clear
73° wxIcon
Hi: 82° Lo: 59°
Feels Like: 73°
Williamsport
Clear
76° wxIcon
Hi: 84° Lo: 61°
Feels Like: 78°
Crawfordsville
Clear
75° wxIcon
Hi: 83° Lo: 63°
Feels Like: 75°
Frankfort
Clear
75° wxIcon
Hi: 81° Lo: 59°
Feels Like: 75°
Delphi
Clear
75° wxIcon
Hi: 83° Lo: 59°
Feels Like: 75°
Monticello
Clear
75° wxIcon
Hi: 82° Lo: 58°
Feels Like: 75°
Logansport
Clear
75° wxIcon
Hi: 82° Lo: 57°
Feels Like: 75°
Calm and Cloudy Start this Wednesday Morning.
WLFI Radar
WLFI Temps
WLFI Planner

Indiana Coronavirus Cases

Data is updated nightly.

Confirmed Cases: 75862

Reported Deaths: 3069
CountyConfirmedDeaths
Marion16088730
Lake7688278
Elkhart492685
Allen4002163
St. Joseph357883
Hamilton2829104
Vanderburgh202213
Hendricks1927108
Cass18029
Johnson1789119
Porter135539
Clark128749
Tippecanoe123811
Madison100665
LaPorte93130
Howard91365
Kosciusko86812
Bartholomew81747
Floyd80948
Marshall79323
Monroe76631
Delaware74552
Dubois70812
Vigo69911
Noble68829
Boone68746
Hancock68339
Jackson5965
Warrick58830
Shelby56527
LaGrange56310
Grant52930
Dearborn51228
Morgan49334
Clinton4444
Henry40620
Wayne38510
White37611
Montgomery35921
Lawrence35227
Harrison34823
Decatur34132
Putnam3128
Daviess27720
Miami2772
Scott27210
Jasper2552
Greene25434
Franklin24615
DeKalb2384
Gibson2314
Jennings22712
Steuben2133
Ripley2138
Carroll1962
Fayette1947
Perry18713
Posey1790
Starke1787
Wells1742
Orange17424
Fulton1722
Wabash1703
Jefferson1672
Knox1610
Whitley1556
Tipton14312
Washington1421
Sullivan1381
Spencer1373
Clay1245
Huntington1243
Randolph1244
Newton12010
Adams1092
Owen991
Jay920
Rush854
Pulaski811
Fountain742
Brown741
Blackford652
Ohio656
Benton640
Pike590
Vermillion580
Switzerland530
Parke511
Martin480
Crawford450
Union410
Warren241
Unassigned0206

COVID-19 Important links and resources

As the spread of COVID-19, or as it's more commonly known as the coronavirus continues, this page will serve as your one-stop for the resources you need to stay informed and to keep you and your family safe. CLICK HERE

Closings related to the prevention of the COVID-19 can be found on our Closings page.

Community Events