Stock Market Plunges Amid Concerns Over Trump's China Summit

Added: 2026-05-19

[00:00:00]So, investors right now taking a much needed breather this week and the day after the markets took a huge plunge, the Dow falling more than 500 points.

[00:00:08]Now, among the concerns, the lack of any major agreements coming out of the China summit this week. NBC's business and economy reporter Ali Canali joining us just sparse details as far as what they actually accomplished.

[00:00:19]>> Yeah, guys, good morning. Investors were hoping for some sort of a breakthrough here, maybe a trade agreement between the two countries or a sign that China could help ease some of these tensions around the straight of Hormuz, but there were very few concrete deals to come out of this summit and that's raising concerns that these energy shocks, that they could last longer than expected.

[00:00:39]And when Wall Street starts to worry that inflation could stick around, you see that show up very quickly in the bond market. So, this is where investors buy and sell things like government and corporate debt and that's exactly what we saw yesterday. So, investors were pulling money out of bonds over fears that inflation could re-accelerate and that sent longer-term interest rates jumping. Now, that matters for everyday Americans because it can make things like mortgages and credit card loans even more expensive at a time when inflation is starting to ripple across the entire economy. One forecast this week from the Philly Fed shows inflation could rise at a 6% annual pace this quarter. You're seeing there that's more than double their previous forecast. So, the big concern on Wall Street is that this isn't just a short-term spike in gas prices, but the start of a broader trend where prices across the economy stay higher for longer here, guys.

[00:01:34]>> is the inflation effect. Ali, thank you.

[00:01:37]Hey, thanks for watching and don't forget you can catch the Today show every morning on NBC or take today when you're on the go. Just follow the Today podcast on Apple podcast, Spotify or wherever you listen.