TD Ameritrade’s viewpoints
On July 11, JJ Kinahan of TD Ameritrade Holding (AMTD) stated his views on the rising US-China trade tensions. The US markets saw a sharp downtrend on June 11 as President Donald Trump announced new tariffs of $200 billion on China and pulled down the major US stock indexes. The Dow Jones Industrial Average fell sharply and ended the day at 24,700.45. The S&P 500 fell 0.71% and ended at 2,774.02.
This movement in the markets has made investors even more uncertain about investments in equities. According to Kinahan, rising trade tensions have weighed on investor sentiments since trade conflicts can severely impact global growth. He added that on July 10, US stocks saw a positive momentum due to expectations of a strong earnings season.
How could recent tariffs impact asset managers?
A key takeaway from President Trump’s decision to levy additional tariffs is that these trade tensions may not end soon. So as the conflict escalates, industries could be impacted, which would hamper global growth. Traditional asset managers saw a downtrend on July 11. Among major asset managers, BlackRock (BLK) fell 0.40%, State Street (STT) fell 1.14%, and Invesco (IVZ) fell 2.17%.
The primary reason for the fall in the stocks of asset managers could be their ETFs since they have exposure across the industries. Caterpillar (CAT), which fell 3.18%, accounts for 3.71% of the SPDR Dow Jones Industrial Average ETF (DIA). President Trump’s decision to impose tariffs could adversely affect the business environment.