The Dow Jones Industrial Average managed to rebound by triple digits in early afternoon trading on March 28 following another triple-digit loss in the previous day. Other U.S. Indexes managed to recover from losses in early morning trading. Stocks have continued to display volatility even after U.S. and Chinese officials expressed interest in coming to the table and avoiding an all-out trade war after the threat of steep tariffs on Chinese products.
A number of key U.S. industries and companies could be negatively impacted. China is reportedly ready to pull the trigger on 15% tariffs on wine and other products if the U.S. escalates the trade dispute. China is poised to become the second-largest wine market by the next decade. Constellation Brands Inc. (NYSE:STZ) boasts core products like beer, wine and spirits. Its stock has plunged 3.5% as of late morning trading on March 28. Shares are down 4.4% in 2018 thus far.
Hormel Foods Corp. (NYSE:HRL) is an Austin-based company engaged in the manufacturing and sale of food products, mainly pork and turkey. It also markets these products internationally. Hormel Foods stock was up 1.13% in late morning trading on March 28. The stock plunged following the announcement of possible tariffs on pork from China, but has since rebounded as a resolution between the two countries has been teased. Shares of Hormel are down 7.7% in 2018 thus far.
Negotiations are reportedly underway between the U.S. and China but volatility is likely to continue into April as the eighth round of NAFTA negotiations are also set to get underway.
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