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This week, investors were met with an old foe: China/U.S. trade tensions. While there were no new sanctions, the Trump administration doubled down on a claim that the coronavirus was created in a lab in China. Already, tensions between the U.S. and China were on shaky ground due to the previous few years’ worth of trade sanctions/tariffs and other issues. With the potential for more tariffs, traders entered the week feeling nervous.
Poor economic data and earnings didn’t help the situation either. Several bellwethers, including a few tech giants, reported less-than-ideal earnings. Here, the COVID-19 outbreak was to blame, and guidance for the rest of the year looked bleak. With tech suffering, traders continued to fret about the current economic situation. Data released this week confirmed the souring nature of the economy and how bad the pandemic was digging in.
However, there was some decent news on the coronavirus front in that many states have begun the reopening process. This gave traders some hope that the damage done from the virus will be short-lived and the economy may once again grind forward.
Be sure to check out our previous Wrap here, when we heard of a potential COVID-19 cure.