Breaking News
0
Ad-Free Version. Upgrade your Investing.com experience. Save up to 40% More details

Wall Street Tumbles at Open as Crypto Crashes; Dow Down 410 Pts

Stock MarketsMay 19, 2021 09:41AM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
© Reuters.

By Geoffrey Smith 

Investing.com -- U.S. stock markets opened sharply lower as a crash in crypto assets - triggered by new regulations announced overnight in China - quickly spread to other risk assets.

With Bitcoin losing 20% in a single session and Ether as much as 40%, stocks seen as proxies for crypto exposure came under heavy pressure. Coinbase Global stock fell over 10% at opening before recovering slightly, while Microstrategy (NASDAQ:MSTR) stock fell 11.5% and Square stock fell 3.5%. 

Tesla (NASDAQ:TSLA). whose CEO Elon Musk has loudly trumpeted the virtues of crypto assets this year until his repudiation of Bitcoin last week, fell 4.6%. At current levels, Bitcoin is now trading below where Tesla bought it for treasury purposes around the turn of the year. The company had used unrealized profits on its holding to bolster its bottom line in its first-quarter earnings

By 9:40 AM ET (1340 GMT), the Dow Jones Industrial Average was down 417 points, or 1.2%, at 33,644 points. The S&P 500 was down 1.5% and the Nasdaq Composite was down 1.7%.

The slide in crypto assets had begun in the Asian session, when the central bank of China reissued guidance to the financial sector forbidding it from facilitating crypto trading in any way. Given the sizable fines handed down recently to China's biggest Internet companies. it's likely that companies such as Tencent  (OTC:TCEHY) and Ant Group - both of whom were given heavy fines recently for unrelated misdeeds - will comply conscientiously in shutting down a major source of demand for crypto assets. Tencent stock fell 1.4%, while JD.com (NASDAQ:JD) stock fell 0.4%, despite a strong set of quarterly results that should underpin the planned IPO of its logistics unit later this month.

The popularity of crypto assets with retail traders appeared to have knock-on effects to stocks popular with the same cohort of investors. AMC Entertainment (NYSE:AMC), a favorite of this winter's 'meme stock' rally, fell 7.7% amid hints of forced selling, while GameStop (NYSE:GME) stock fell 3.4% - albeit that's a pretty small move for GameStop this year. 

Elsewhere, Cathie Wood's ARK Innovation ETF (NYSE:ARKK) fell 3.9% to test a six-month low.

Back in old economy news, Target  (NYSE:TGT) stock was one of few to escape the carnage after the retailer restored annual guidance on the back of a stronger-than-expected first quarter. Target hit a new all-time high before slipping a little to trade up 5.1%. 

Oil and gas stocks meanwhile were hurt by the sharp drop in crude prices as money flowed out of risk assets in general. Exxon Mobil (NYSE:XOM), Chevron (NYSE:CVX) and Conocophillips (NYSE:COP) stock all fell by between 3% and 4%. Mining giant Freeport-McMoran (NYSE:FCX) stock slid 7.9% as industrial metals suffered a similar fate.

Wall Street Tumbles at Open as Crypto Crashes; Dow Down 410 Pts
 

Related Articles

Boeing Soars On Surprise Profit as Revenue Jumps 44%
Boeing Soars On Surprise Profit as Revenue Jumps 44% By Investing.com - Jul 28, 2021

By Dhirendra Tripathi Investing.com – Boeing (NYSE:BA) stock rose 6% Wednesday after the company surprised the Street with a profit when a loss was expected. Airlines and their...

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with other 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, don’t trash it.

  •           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. Avoid profanity, slander or personal attacks directed at an author or another user. Racism, sexism and other forms of discrimination will not be tolerated.

  • Use standard writing style. Include punctuation and upper and lower cases. Comments that are written in all caps and contain excessive use of symbols will be removed.
  • NOTE: Spam and/or promotional messages and comments containing links will be removed. Phone numbers, email addresses, links to personal or business websites, Skype/Telegram/WhatsApp etc. addresses (including links to groups) will also be removed; self-promotional material or business-related solicitations or PR (ie, contact me for signals/advice etc.), and/or any other comment that contains personal contact specifcs or advertising will be removed as well. In addition, any of the above-mentioned violations may result in suspension of your account.
  • Doxxing. We do not allow any sharing of private or personal contact or other information about any individual or organization. This will result in immediate suspension of the commentor and his or her account.
  • Don’t monopolize the conversation. We appreciate passion and conviction, but we also strongly believe in giving everyone a chance to air their point of view. 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 (9)
CT OREN
CT OREN May 19, 2021 11:31AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
This is the best news of the day! Hope we can have market crash on next days as well.
Mr Rogers
Mr Rogers May 19, 2021 10:53AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Stops kicking In now!
neang aee 냥에
neang aee 냥에 May 19, 2021 10:43AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Crypto was the sole hope for overvalued assets. And No More
Thomas Vulcani
Thomas Vulcani May 19, 2021 10:40AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
The Biden effect has just started. Worst than Carter all Dems must go.
Rob Fordham
Rob Fordham May 19, 2021 10:40AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Huh? This is just noise. We are on the cusp of the greatest economic expansion since wwii. Pandemic ending pent up demand etc. heck if anything biden is pushing it further with infrastructure. It will be choppy but its going up up up
John Klan
John Klan May 19, 2021 10:40AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
hope you're enjoying paying 3.50 per gallon for gas.
Ryaken Koies
Ryaken Koies May 19, 2021 10:40AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Annoying rant from a tinfoil hat
Church of Bear Market
Church of Bear Market May 19, 2021 10:29AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Hear-yee. He who puts his coins (or Bitcoins) on luck on the cast of a dice shall lose them. Repent!
Rob Fordham
Rob Fordham May 19, 2021 10:29AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Yea u keep on that bear suit u will regret it just saying we are going into the greatest ecomnic expansion since wwii so should be buying not selling huge opportunity here
Murali Brahmandam
Murali Brahmandam May 19, 2021 10:28AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
This is the beginning of the end. Buy pain reliever.
Ricardo Diogo
rcd72 May 19, 2021 10:20AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
copper gold price bluff imploded like cripto....copper price is between 6 to 7 k USD....
Nick Johnson
Nick Johnson May 19, 2021 10:16AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Welcome to the Biden economy
Ronald Warren
Ronald Warren May 19, 2021 10:07AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Sell and buy back at 8.00
Ronald Warren
Ronald Warren May 19, 2021 10:07AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Mixed messages. Lol
lokesh sharma
lokesh sharma May 19, 2021 10:07AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
haha....so true it is
 
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