Trump is playing to the religious paranoia of his base, costing investors billions.
Shares of Boeing Co. dropped Wednesday, but bounced sharply off earlier lows, after some analysts recommended buying on the recent dip, as fears over the damage from a potential trade war are overdone.
After China announced retaliatory tariffs of up to 25% on 106 American products, including airplanes and soybeans. That sent Boeing’s stock BA, +0.66% tumbling as much as 5.7% in early trade, given the company’s high revenue exposure to China-based customers.
The stock recovered most of the losses, as did the broader stock market, but it still closed down 1.0% to pace the Dow Jones Industrial Average’s DJIA, +0.96% decliners. The stock’s price decline acted as a 23-point weight on Dow’s price, which rose 231 points, reversing earlier losses of as much as 510 points. See Market Snapshot.
“There’s no trade war here,” Larry Kudlow, Mr. Trump’s new top economic adviser, said in an interview on Fox Business Network. He described the threat of tariffs as “just the first proposal” in a process that would involve negotiations and back-channel talks. “I understand the stock market’s anxiety,” he said. “But on the other hand, don’t overreact.”