I Am Shocked No Stock Market Crash Today | Summary and Q&A

May 6, 2019
Financial Education
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I Am Shocked No Stock Market Crash Today


President Trump's unexpected tweets about increasing tariffs on Chinese goods shocked the stock market, but the impact was not as severe as expected.

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Key Insights

  • 🤝 President Trump's unexpected tariff announcement created uncertainty and the possibility of a delayed trade deal.
  • 🥺 US-based companies will bear the burden of increased tariffs, potentially leading to higher retail prices.
  • 💩 Chinese stocks took a major hit, while stocks in other sectors remained relatively stable.
  • 🤝 The market dislikes uncertainty, and the tariff announcement caused a shift from optimism about a trade deal to increased uncertainty about future economic conditions.
  • 🥳 The impact of the tariff announcement on the stock market may evolve in the coming days and weeks.
  • 💻 If the situation escalates, US companies with exposure to China could see their earnings decline further, putting additional pressure on the stock market.
  • ❓ Investors may see the current market conditions as an opportunity to find stocks with attractive valuations.


well guys I've got to say what is going on here today in the stock market is absolutely shocking me I thought we would have an awful day to day like at least 450 plus points down on the Dow I was thinking Nasdaq down at least two to three percent based upon the news that came out last night on Twitter okay so if you didn't know president Trump basi... Read More

Questions & Answers

Q: What did President Trump's tweet about tariffs reveal?

President Trump's tweet indicated his intention to raise tariffs on Chinese goods, going against his previous statements and causing uncertainty about the U.S.-China trade deal.

Q: Who pays the tariffs imposed on Chinese goods?

Contrary to President Trump's claim, the tariffs are actually paid by the importing companies in the US, not by China. This means that US-based companies will bear the burden of the increased tariffs.

Q: How did the stock market react to the tariff announcement?

Although Chinese stocks experienced significant declines, the reaction in the overall stock market was not as drastic as expected. The Dow Jones Industrial Average fell by less than 200 points, defying predictions of a much larger drop.

Q: What impact could the increased tariffs have on US companies and the stock market?

If the US-China trade deal falters and tariffs continue to rise, it could hurt US companies that rely on Chinese business. Companies with significant exposure to China, such as Alibaba and Wynn Resorts, saw their stock prices decline. This could lead to weaker earnings and negatively affect the stock market overall.

Summary & Key Takeaways

  • President Trump's tweets revealed his plan to raise tariffs on Chinese goods, contradicting his previous statements and surprising the stock market.

  • The announcement suggested a possible delay in the U.S.-China trade deal and imposed higher tariffs on various goods.

  • Chinese stocks took a hit, but the overall stock market reaction was not as dramatic as anticipated.

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