Dow Flails After ‘Devastating’ Beijing Bombshell Pummels Trump

Josiah Wilmoth  

By CCN: The Dow recoiled on Wednesday after China exposed its bombshell strategy to win the trade war by pressuring the Trump administration into capitulation.

DOW SLIPS INTO FREEFALL

All of Wall Street’s major indices lurched lower, as intensifying trade war fears thundered across the global market.

As of 10:39 am ET, the Dow Jones Industrial Average had plummeted 160.52 points or 0.63%, thrusting the DJIA down to 25,187.25. The S&P 500 dropped 14.04 points or 0.5% to 2,788.31, and the Nasdaq fell 38.18 points or 0.5% to 7,569.17.

BEIJING BOMBSHELL THROWS TRUMP ON HIS HEELS

Stocks plunged after Beijing revealed the ace up its sleeve in the rapidly escalating conflict with the United States: rare earths.

An editorial in the China’s People’s Daily – the Communist Party’s official newspaper – called for Beijing to drastically reduce exports of rare earths, which are vital to key industrial sectors including defense, energy, and automobile manufacturing.

Around 80% of all US rare earths imports come from China, and they’re crucial for producing everything from nuclear batteries to smartphones.

Jack Lifton, co-founder of Technology Metals Research LLC, told Bloomberg that China’s rare earths weaponization would deal the US – and Trump – a “devastating” blow.

“There is no such thing as an automobile sold in the U.S. or made in the U.S. that doesn’t have rare-earth permanent magnet motors somewhere in its assembly,” Lifton said. “It would be a tremendous hit to the consumer appliance industry and the automotive industry. That means washing machines, vacuum cleaners, cars. The list is endless.” […]

via Chinese Threaten To Withhold Rare Earth/Strategic Minerals, Sending Stock Market Into Nose-Dive