S&P Drops Below 3,000 On Report US Considering "Transaction Controls, Asset Freezes" On Chinese Officials, Firms

In the latest rehash of the exact same headline a variation of which we have seen every single day for the past two weeks, moments ago Bloomberg reported that The Trump administration is considering "a range of sanctions on Chinese officials, businesses and financial institutions" over Beijing’s accelerating effort to crack down on Hong Kong.

While there was nothing materially new in this particular Bloomberg report that other newswires did not already report previously, it claims that the "Treasury could impose controls on transactions and freeze assets of Chinese officials and businesses for implementing a new national security law that would curtail the rights and freedoms of Hong Kong citizens."

On the other hand, and feeding the growing speculation we discussed yesterday that the "bluffing" US has become a paper tiger and will not actually do anything besides jawbone, the report also notes that while discussions are ongoing "no decision has been made on whether or how to employ the sanctions."

Earlier in the day, White House press secretary Kayleigh McEnany said that Trump is "displeased" with China’s efforts and “that it’s hard to see how Hong Kong can remain a financial hub if China takes over." She also declined to elaborate about specific actions the president was considering, because so far it really has been just non stop chatter.

The report however was sufficient to push the S&P back below 3,000 as the Dow flirts with 25,000, which spark some modest dollar buying.