Third Wave Coming? China’s New COVID Lockdown Could Determine Fed’s Interest Rate Hike

China’s COVID lockdown of Shenzhen, the southern financial and manufacturing hub that neighbors Hong Kong, came as a shock.

Hong Kong’s Hang Seng index plunged five percent to its lowest level since 2016. The Hang Seng tech index crashed 11 percent. Chinese stocks that trade in New York fell sharply, with videogame maker NetEase, e-commerce giant JD.com, search and AI giant Baidu.com, farm-tech firm Pinduoduo among the worst performing stocks in the Nasdaq composite.

No market is an island, especially when China is involved, so the closing of Shenzhen sent a shockwave rippling through U.S. stocks. The Nasdaq Composite dropped 262.59 points, or 2 percent, to its lowest level since December 2020. Shares of Apple fell 2.7 percent, Amazon declined 2.5 percent, and Google shares tumbled three percent. Nothing calamitous, however. The S&P 500 was down just seven-tenths of a point, and the Dow Jones Industrial Average actually rose on the day. (Read more from “Third Wave Coming? China’s New COVID Lockdown Could Determine Fed’s Interest Rate Hike” HERE)

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