Stocks are poised to recover from some of their losses on Monday, when the market closed down more than 760 points to mark the worst trading day of the year.
Both Dow and S&P futures have risen 0.8%, with the former rising upwards of 200 points and the latter gaining 23 points. The Nasdaq improved nearly 1%, or 71 points, in pre-market trading.
Footwear stocks also appeared to bounce back somewhat: Athletic names like Nike, Under Armour and Foot Locker were in the green — up 0.73% to $79.55, 3.2% to $19.00 and 2.2% to $39.44, respectively. Tapestry climbed 0.61% to $28.00, while Capri Holdings jumped 0.91% to $32.00.
Spurring yesterday’s sell-off was the Chinese government’s decision to devalue the yuan to below its 7-to-1 ratio with the United States dollar for the first time in a decade. Investors have expressed worries that the U.S. could respond by knocking down its own dollar, which could trigger a currency war and weaken the spending power of American shoppers.
China’s central bank said that the decline was a consequence of trade protectionism, while Trump accused the country of engaging in currency manipulation.
“This is a major violation which will greatly weaken China over time,” he wrote on Twitter. (The president also took aim at the Federal Reserve, which recently cut its key interest rate in the hopes of getting ahead of a potential slowdown in the U.S. economy.)
Wall Street is also anxious over Washington’s threat of higher tariffs on Beijing, following Trump’s sudden announcement on Friday of a 10% tariff on an additional $300 billion worth of Chinese goods. The moment marked the end of a temporary truce between the world’s two largest economies in their yearlong trade war.
News of the duty hike shocked the footwear industry, with executives from trade groups and major companies bemoaning the impact of the levies on manufacturers, retailers and ultimately consumers. The fourth tranche of tariffs is set to hit footwear, apparel and other accessories on Sept. 1.
Watch the highlights at the 2018 FNAAs.
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