Breaking News
0

Wall Street tumbles on tech sector, trade war worries

Stock MarketsApr 02, 2018 06:46PM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
© Reuters. People walk by a Wall Street sign close to the NYSE in New York

By Stephen Culp

NEW YORK (Reuters) - Wall Street shares plunged on Monday as investors fled technology stocks amid resurgent trade war worries, with key indexes trading below their 200-day moving averages and the S&P 500 closing below that pivotal technical level for the first time since Britain's vote to leave the European Union in June 2016.

The first trading day of the second quarter began with a broad selloff concentrated in the technology and consumer discretionary sectors, as losses by Amazon.com (O:AMZN), Tesla (O:TSLA) and Microsoft (O:MSFT), among others, took center stage from retaliatory trade measures China unveiled on Sunday.

With the S&P 500 in a 10 percent correction from its record high in late January, investors were increasingly concerned a nine-year bull market might be in danger of ending.

"It’s more complicated than just a tech selloff. What's hurting everything is that the S&P went through its 200-day moving average," said Brian Battle, director of trading at Performance Trust Capital Partners in Chicago. "That attracts momentum sellers and they don't care what the fundamentals are."

The Dow Jones Industrial Average (DJI) fell 458.92 points, or 1.9 percent, to end at 23,644.19 after dipping below its 200-day moving average. The S&P 500 (SPX) fell 58.99 points, or 2.23 percent, to 2,581.88 and the Nasdaq Composite (IXIC) dropped 193.33 points, or 2.74 percent, to 6,870.12.

Amazon.com (O:AMZN) was the biggest drag on the S&P 500, down 5.2 percent, as President Donald Trump continued his twitter attacks on the online retailer.

All 11 major sectors of the S&P 500 closed lower, with the biggest losses seen by the consumer discretionary (SPLRCD) and technology (SPLRCT) indexes, which were down 2.8 percent and 2.5 percent, respectively.

The tech-heavy Nasdaq was dragged lower by Microsoft (O:MSFT), Intel (O:INTC), Apple Inc (O:AAPL), Facebook (O:FB) and Alphabet (O:GOOGL).

Shares of Tesla Inc (O:TSLA) ended the day down 5.1 percent after the company was reported to be making 2,000 Model 3s per week, missing its 2,500 target.

The electric automaker's losses extend last week's near 14-percent decline as investigations of a fatal California crash and a Moody's credit downgrade weighed on the stock.

Health insurer Humana Inc's (N:HUM) shares closed up 4.4 percent on news it was in talks with Walmart (N:WMT) to expand their partnership or possibly be acquired by the retailer. Walmart stock fell 3.8 percent.

U.S. Treasury yields (US10YT=RR) fell to two-month lows as investors fled sliding stocks for safety ahead of Friday's closely watched jobs report.

Declining issues outnumbered advancing ones on the NYSE by a 4.17-to-1 ratio; on Nasdaq, a 4.14-to-1 ratio favored decliners.

Volume on U.S. exchanges was 7.71 billion shares, compared to the 7.29 billion average over the last 20 trading days.

Wall Street tumbles on tech sector, trade war worries
 

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind: 

  • Enrich the conversation
  • Stay focused and on track. Only post material that’s relevant to the topic being discussed.
  • Be respectful. Even negative opinions can be framed positively and diplomatically.
  •  Use standard writing style. Include punctuation and upper and lower cases.
  • NOTE: Spam and/or promotional messages and links within a comment will be removed
  • Avoid profanity, slander or personal attacks directed at an author or another user.
  • Don’t Monopolize the Conversation. We appreciate passion and conviction, but we also believe strongly in giving everyone a chance to air their thoughts. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
Comments
Apr 02, 2018 11:56AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Recession is near and big cash knows it... Stats will be manipulated to keep the little guys in the game, then big guys will exit
Reply
0 0
Mask of Zorro
Mask of Zorro Apr 02, 2018 9:02AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
I guess today closing would be green.This tariff issues shoud have surpass many uncertainties since February.China is presenting their case as to counter US pre dominant in taxes & tariff.Market is digesting with more uphill of swings coming!!
Reply
0 0
Apr 02, 2018 8:38AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
There will be no trading war:) The US$ will be weaker and weaker until 1st half of 2020:)
Reply
1 0
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.
Continue with Google
or
Sign up with Email