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US indices started trading lower on geopolitical risks


August, 02 2022
watermark Economic news

US stock indexes are declining in early trading on Tuesday due to rising tensions between the United States and China.


China has said it will take tough measures if the Speaker of the US House of Representatives Nancy Pelosi visits Taiwan. The Ministry of Defense of the People's Republic of China demanded to cancel Pelosi's visit, otherwise Chinese fighters will be forced to destroy the plane when approaching Taiwan. 


As a result, the value of the Dow Jones Industrial Average decreased by 0.93% to 32493.3 points. The Standard & Poor's 500 has dropped 0.57% to 4095.17 points since the market opened. The Nasdaq Composite dropped 0.4% to 12,319.41 points.


Nevertheless, it has already become known that the aircraft with Nancy Pelosi on board has successfully landed in the administrative capital of Taiwan, Taipei. Now the markets are waiting for China's further actions. At the same time, the White House refused to be responsible for Pelosi's trip to Taiwan.


A little earlier, Chinese media reported that Chinese Su-35s were sent to Taiwan, and air raid sirens were turned on in mainland China. At the same time, several dozen American fighters flew towards Taipei from an air base in Japan.


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