Market Snapshot - Monday 12.02.19

DJIA Futures Monday 12.02.19

S&P 500 Futures Monday 12.02.19

Nasdaq Composite Futures Monday 12.02.19

Today saw a steep drop across all three major US indexes as trade news coupled with unfavorable manufacturing report dampened the optimism that fueled the broader market to new heights in November.

It remains unclear as to when a phase one US-China trade deal might take place, particularly after President Trump had signed legislation in support of the Hong Kong protests. If a trade deal doesnt take place before December 15, the possibility of additional US tariffs on Chinese goods may move ahead as scheduled.

In addition to tariffs on China, President Trump also tweeted: Brazil and Argentina have been presiding over a massive devaluation of their currencies. which is not good for our farmers. Therefore, effective immediately, I will restore the Tariffs on all Steel & Aluminum that is shipped into the U.S. from those countries.

Topping off doubts in the current trade environment, the ISM Manufacturing PMI came in at 48.1, showing us that manufacturing activity continued to contract last month. The ISM PMI figure is well below economist expectations of 49.4, and stocks seemed to have hit their lows upon the reports release.

The question now is whether the data contain fundamental indications that may outweigh the factors that brought indexes to dazzling new heights last month, or whether this turn merely signals another short-term corrective phase.

The Dow plunged 268.37 points, down -0.9%, closing at 27,783.04. The S&P 500 slid 0.9%, closing at 3,113.87 (note that todays slide marks the S&Ps biggest down-day in two months. The Nasdaq closed at 8,567.99, down 1%. The VIX currently stands at 14.3, rising from its previous level of 12.6 at the start of the day.

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