Marts’ global warning

Slower China growth triggers wider concerns

Wall Street is forecasting bleak times.

US markets sold off sharply Friday after weak economic data from China stoked worries of a global slowdown in 2019.

The Dow Jones industrial average fell 496.87 points, shedding 2 percent, to close at 24,100.51 after retail growth in China stalled at its lowest level in more than 15 years while the nation’s factory output grew at its slowest rate since 2016.

It was the lowest close for the blue-chip index since May. The S&P 500 and Nasdaq faced similar losses, dropping 1.9 percent and 2.3 percent, respectively. Friday’s sell-off left all three major indexes simultaneously in correction territory for the first time since March 2016.

Weak data from China came as the country’s trading tensions escalate, and President Trump was quick to claim on Twitter that China’s slowdown would make it more likely to cut a truce.

“China wants to make a big and very comprehensive deal. It could happen, and rather soon!” Trump tweeted Friday.

But the market wasn’t im- pressed as the sell-off accelerated into the afternoon.

“I think the most important takeaway is that the Trump tweet on China had no effect on sentiment and by proxy the market,” Michael Antonelli, managing director at RW Baird, said.

“In the past, commentary like that would have been enough for an intraday rally at least,” Antonelli said.

Analysts agreed that more selling is likely in coming weeks — even if economic data in the US remain sound. Unemployment stands at 3.7 percent — its lowest level since 1969.

“This stock market is priced for bad news,” Brian Belski, chief investment strategist at BMO Capital Markets, said, noting that the fear he sees on Wall Street is reminiscent of 2008, even though economic conditions are better now.

“Whatever headline plays today [traders] play defense against. It’s full on hate versus full on love and there’s no in between,” he added.

Barring a “surprise confidence booster,” Wall Street can expect more jittery days ahead, he said.

All eyes will be on the Federal Reserve next week as it concludes a two-day meeting on Wednesday. Wall Street still expects the Fed to hike rates, but will be eagerly looking for hints of the Fed’s plans in 2019 and 2020.

“[The Fed’s] messaging is going to be most important,” Belski said.