Dow, S&P 500 set for worst May tumble in nearly 50 years amid U.S.-China trade clash

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Dow, S&P 500 set for worst May tumble in nearly 50 years amid U.S.-China trade clash
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The intensifying Sino-American trade squabble is making for uniquely brutal May trading for U.S. stocks.

The intensifying Sino-American trade squabble is making for uniquely bad May trading for U.S. stocks, which continue to tumble after the S&P 500 suffered its worst week of 2019.

President Donald Trump, via Twitter over the weekend and early Monday, vowed a hard line on China and said the U.S. held the upper hand in the battle, while Chinese media vowed Beijing would stand strong. The hard-line tone from both sides was seen adding to downside pressure, analysts said.Also read: China media say ‘fierce U.S. offensive’ over trade won’t work

The turnabout for markets come just after those major indexes booked their sharpest April gains in about 10 years. However, the rich gains for stocks to start the year may have made them more vulnerable to a slump as international trade problems intensify, market participants said.

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