Ask Not (Only) How China Slowdown Affects U.S.; Ask How U.S. Affects China
by Leslie Josephs
Concerns about China’s slowing economy may be top of mind for investors, but issues plaguing US companies have a role. Wal-Mart, which sources some goods from China, is planning to close 2% of its stores while suppliers of smartphone components in Asia have warned about a demand slowdown.
“It’s all interconnected,” says Steve Blumenthal, CEO of CMG Capital. “From Wal-Mart to the supply chain [of] Apple, it’s a signal that we’re likely at the end of this growth cycle and headed into a recession.”
Wal-Mart falls 1.2%, while Apple’s off 3.4%. S&P 500 is down 2.4%.