- US stocks saw deep losses Monday as President Donald Trump continued to publicly criticise Amazon and his administration prepares to roll out tariffs on Chinese imports.
- Stocks in the technology, consumer discretionary, and energy sectors led major indexes lower.
- Follow the Dow Jones industrial average and Nasdaq 100 index.
The selling also comes ahead of the Trump administration’s plan to unveil this week a list of Chinese imports targeted for US tariffs. The list of $US50 billion to $US60 billion worth of annual imports is expected to target “largely high-technology” products.
The more tech-heavy Nasdaq 100 – which has been a lightning rod for market volatility in recent weeks – plummeted as much as 3.9% to lead all major US indexes. Meanwhile, the benchmark S&P 500 dropped as much as 3.3%, and the 30-company Dow Jones industrial average at one point slid more than 3.1%, or 759 points.
The S&P 500 also closed below its 200-day moving average, a key technical level that, when breached, could signal further selling ahead for the gauge.
Among the worst-hit technology firms were chipmakers, including Lam Research, Micron Technology, Nvidia, Intel, and Cisco, which all dropped at least 3.9%. Because of their position in supply chains, these firms are more vulnerable to geopolitical turmoil, particularly as it pertains to China.
Mega-cap technology companies also took a dive as the New York Stock Exchange’s FANG+ Index – which includes Facebook, Amazon, Netflix, Google, and six other massive global firms – decreased 4.1%. Amazon, Netflix, and Tesla all logged losses exceeding 5.1%.
Tech-sector woes are mounting at a time when it seems everything is going wrong simultaneously for the industry. Netflix shares are falling deeper into a correction in the wake of a recent data breach, while Tesla is under pressure ahead of its quarterly production update for the Model 3 sedan.
Check out Business Insider’s in-depth coverage of the market’s recent turbulence:
- Tumbling stocks just closed below a key technical threshold – and it could mean the pain is just beginning
- A group of investors once left for dead looks more prepared than anyone to fight off a trade war
- GOLDMAN SACHS: The stock market’s turbulent first quarter created a bonanza for 2 groups of companies
- Here’s a 2-part trade that will help investors survive as global economies splinter apart, says Bernstein
- There’s an eye-popping statistic that shows turbulence in tech stocks may just be getting started
In the bond market, the 10-year US Treasury yield fell one basis point, to 2.73%, close to the key 3% level that traders are closely watching. Bank of America Merrill Lynch has said a trade war could move yields higher in the medium-to-long term.
Here’s a rundown of other asset classes:
- US Dollar Index, +0.04%
- Crude oil (WTI), -2.71%
- Cboe Volatility Index (VIX), +18%
- Gold, +1.52%
- Bitcoin, +1.70%
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