Analysts say the partial U.S.-China trade deal doesn't touch on thorny issues plaguing both sides, and warn talks could break down again.World Economyread more
"The Champagne should probably be kept on ice, at least until the two presidents put pen to paper," said state-owned media China Daily.Traderead more
Economists polled by Reuters had expected Chinese exports denominated in the U.S. dollar to fall by 3% and imports to decline by 5.2% in September, compared to a year ago.China Economyread more
The U.K. and EU are gearing up for what could be the busiest week in British politics since June 2016.Europe Politicsread more
"It seems like what the two leaders have done is try to set some of the thorny political issues to the side," said Dhruva Jaishankar, director of the U.S. Initiative at the...Asia Politicsread more
The U.S. had plans to hike duties on at least $250 billion in Chinese goods to 30% from 25% on Tuesday. Despite the partial trade deal, some banks on Sunday wrote that tariff...Marketsread more
The industry has pulled in $322 billion over the past six months, the fastest pace since the second half of 2008.Marketsread more
The United States has cleared the final procedural hurdle in order to impose tariffs on billions of dollars of European products later this month.World Economyread more
A technical recession occurs when there are two consecutive quarters of economic contraction.Asia Economyread more
"Deepfakes" are being used to depict people in fake videos they did not actually appear in, and can potentially affect elections, diplomacy and how markets move, experts say.Technologyread more
Chinese President Xi Jinping warned on Sunday that any attempt to divide China will be crushed.China Politicsread more
For all the excitement in the past 12 months, the stock market is exactly where it was one year ago.
The S&P 500 just traded at 2,851.67. On Aug. 6, 2018, the index closed at 2,850.4.
So without dividends, investors have made nothing in the market and lost money including any fees. With dividends, investors have made a return of about 2%, barely keeping pace with inflation.
The last 12 months have been a whirlwind for stocks. Last year, the euphoria of a massive corporate tax break gave way to a U.S.-China trade war and a rate increase from the Federal Reserve, causing the market to suffer its worst December since the Great Depression and the S&P 500 to dip into bear market territory on an intraday basis.
Markets had a major comeback in January as the Fed softened its stance on rates, eventually leading to a cut last week. Trade tensions also seemed to have cooled. But back in May, China reneged on an almost finished deal, and the world's two largest economies started a tariff fight once again.
With that, investors' fears of a global slowdown picked up and the markets shifted focus to the Federal Reserve, hoping it would backstop the trade war with a lengthy rate-cutting cycle. The central bank didn't fully appease the market, giving a 25 basis point cut last week but characterizing it as a "midcycle adjustment," disappointing traders and kick-starting the most recent downturn for stocks.
The markets suffered their worst day of the year on Monday as it became clear Trump would not back down on a trade deal of his liking, despite a looming election year.
"The resultant sharp market retreat puts pressure on Donald Trump since he has touted the S&P 500 as being a key gauge of his economic stewardship," said Tobias Levkovich, Citi's chief U.S. equity strategist. "Thus, the reaction of equity prices might force the White House to lower the protectionist rhetoric and seek out some sort of compromise position."
Despite the year-long volatility, the S&P 500 is still up more than 30% since Trump was elected in November 2016.