President Trump says he will hold Friday news conference on China

“Obviously, President Trump has been escalating the rhetoric…but how this all plays out is something that could take time, he said.

“But what’s the U.S. going to do? Launch a military strike against China? I don’t see that happening,” Frederick said.

Still, investors shouldn’t discount those tensions, said Andrew Smith, chief investment strategist of Dallas-based Delos Capital Advisors. “We’re in an inflection point,” Smith told MarketWatch, and it is possible to see pullbacks of as much 5-10% as investors rotate toward smaller-cap, value-oriented names.

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