News

Economy & Business

Stocks Drop as Recession Fears Grow, Trade Tensions Loom

Traders work on the floor of the New York Stock Exchange (NYSE) in N.Y., July 25, 2019. (Brendan McDermid/Reuters)

Stocks sank Monday as hope for a trade deal with China flagged and political unrest in several areas of the world roiled markets, stoking fears of another global economic recession in the near future.

Conservative incumbent Mauricio Macri unexpectedly finished a distant second in Argentina’s first round of presidential voting Sunday to left-leaning opponent Alberto Fernández, hurting his chances of winning a second term in October and sparking fears of economic turmoil ahead for the country. Then, on Monday, pro-democracy protests in Hong Kong reached a head, causing Hong Kong International Airport, one of the world’s most heavily trafficked travel hubs, to shut down and cancel all flights after about 5,000 protesters swarmed it.

Meanwhile, the global economy has slowed, and trade tensions with China have escalated in recent weeks after President Trump raised tariffs on $200 billion of Chinese imports in May.

Bank of America offered a bleak outlook on Friday, saying in a note to clients that it sees about a one in three chance of a recession hitting some time in the next year, according to recent data and events. Goldman Sachs Group echoed that sentiment over the weekend, writing in a memo to clients that it no longer expects a trade deal between China and the U.S. to materialize before the 2020 presidential election.

By 1 p.m. Monday, the Dow Jones Industrial Average had dropped 280 points, the S&P 500 had dropped 24 points, and the NASDAQ Composite Index had dropped 55 points.

Most Popular

U.S.

What The 1619 Project Leaves Out

“The goal of The 1619 Project, a major initiative from The New York Times that this issue of the magazine inaugurates, is to reframe American history by considering what it would mean to regard 1619 as our nation’s birth year,” The New York Times Magazine editors declare. “Doing so requires us to place ... Read More
Sports

It’s Time for Colin Kaepernick to Move On

Colin Kaepernick. Remember him? Below-average quarterback. Above-average poseur. Not “activist,” not really. Activists actually say stuff. Kaepernick almost never says anything. He’s like the Queen or most popes — you have to read the deep-background musings of supposed members of his inner circle to get ... Read More
PC Culture

Courage Is the Cure for Political Correctness

This might come as some surprise to observers of our campus culture wars, but there was a time, not long ago, when the situation in American higher education was much worse. There a wave of vicious campus activism aimed at silencing heterodox speakers, and it was typically empowered by a comprehensive regime of ... Read More
Elections

Trump and the Black Vote

"Donald Trump is a racist, white supremacist, white nationalist. So are his supporters." Some version of that refrain is heard almost hourly somewhere in mainstream media. Democratic politicians seem to proclaim it more often than that. Listening only to the Left, you'd conclude that more than half a ... Read More