Transcript for Dow Jones closes down over 750 points during trade war with China
A extraordinarily bad day on Wall Street some breaking news there the Dow down almost 800 points today one of its worst days of the year so far chief. Business correspondent Rebecca Jarvis is here to explain just what's going on other Haver wrecker. Seven what we're seeing is this game of chicken playing out in real time that's what's hitting the stock markets right now and investors on Wall Street. Are starting to get the impression that China has more resolve here than the United States that. China which has complete control over their economy where they don't elect their leaders whereas we do here in the United States. Will play this out and let this play out and let consumers here in the United States feel the impact of these tariffs. Rather than coming to the table for a deal now. Most businesses in the United States do agree that something needs to be done one in five US businesses say they have had the right keys stolen by China a number of businesses believed. That bit tables need to be fairer that they news need to go more smoothly between the US and China relationship. But they're also aware of the fact that this tariff issue is going to keep costing them more money into me here. That 10% tariff that president trump just announced on. 300 billion dollars of goods coming from China means that costs are either going up for consumers or US businesses either way. That's gonna hit the bottom line. US consumers they may feel they may for example pay seventy dollars more for their cell phone 120 dollars more for the laptop. Shoes which we get about 70% of our footwear in this country. From China. Shoe prices very likely will go up at the same time if businesses choose to absorb these costs and they very well might absorb some of these costs. They it will see those bottom lines hit. And the biggest question is filled the light. How long does this tape how long does this last if this lasts for weeks months you nurse. All of us some Mac gets more and more expensive for businesses. And it could ultimately ripple through two jobs and that's where the American people really are going to be paying attention especially. As we come into the election. Even with this move in the markets today even with the worst day for 2019. If you look at the Dow it's still up this year about 10% the S&P 500. Which is what most people's 401 k.s are tight you that is still up about thirteen and a half percent. But the longer this lasts the greater the uncertainty is. There's a gauge on Wall Street of fear it's called the Beck's and in the last week that Egypt fear. Is up a 100%. The longer that fear gauge continues to go up. The longer the overall market continues to go down the harder it is to wait for China to come to the table and make it deal seven.
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