Why Has the Dow Jones Plunged 500 Points in One Day?

Why Has the Dow Jones Plunged 500 Points in One Day?

Wells Fargo's Investment Institute expects the S&P 500 will finish the year in the 2,800-2,900 point range, about 300 points higher than where it was trading on Monday. The S&P 500 index and Nasdaq lost 2.2 and 2.7 percent each, falling into correction range, a 10-percent drop from their 52-week highs.

The Standard & Poor's 500 index skidded 71 points, or 2.7 percent, to 2,569 as of 1:36 p.m. The price of gold and of silver, both considered flights to safety, were up on Monday. Despite its recent losses, Amazon stock is still up about 18 percent in 2018.

Consumer discretionary (+0.8%) is the early sector leader, while technology (+0.6%) and financials (+0.6%) also outperform.

That tweet was enough to send Amazon shares down 7 percent, or $50 billion, in early morning trading last week.

China's imposition of tariffs on a US$3 billion list of USA goods including pork and apples was expected, but still helped send markets down in what has become a jittery environment over trade war fears, said Craig Fehr, a Canadian markets strategist at Edward Jones in St. Louis.

Investors were also rattled by China announcing Monday that it is raising import tariffs on US pork, apples and other products, a move that ratchets up trade-war talk between the world's two biggest economies.

The fears of an impending trade war have rocked markets since Trump announced 25 percent tariffs on steel and 10 percent on aluminum that the United States imports.

"We always recommend investors take a long-term view during wild rides like we're seeing today", said Mike Loewengart, vice president of investment strategy at E*Trade. -Chinese trade tensions and mounting public scrutiny of technology companies. So we can expect to see this trade war continue.

"The Trump administration's announcements on trade sanctions in total so far encompass a relatively small portion of overall US trade, " according to Pride's note.

COMMODITIES: Benchmark U.S. crude lost $1.71, or 2.7 percent, to $63.23 a barrel in NY.

Media conglomerate Viacom sank 4 percent following reports that sibling company CBS wanted to buy it for below its current market value.

Troubles for technology companies are a big factor driving stocks lower.

"The mood remains decidedly bearish, and there is certainly no shortage of reasons to be fearful", said Chris Beauchamp, chief market analyst at IG. Much of Trump's criticism has come after unfavorable reporting in The Washington Post, which is owned by Amazon founder Jeff Bezos but is a separate company from Amazon.

Intel (INTC) shares were slammed after Bloomberg News cited people familiar with the matter in saying Apple (AAPL) planned to use its own chips in Mac computers starting as early as 2020. And Tesla, the electric-car marker on the defensive following a deadly accident involving its autonomous driving system, was down more than 5%.

Musk didn't help matters by tweeting a series of April Fools' day jokes about Tesla going bankrupt. That is a surprising reversal for the technology industry, which had spearheaded much of the gains of the almost 10-year bull market.

Returning from the long Easter holiday weekend, Europe's stock markets tracked others lower, though the scale of the losses were diminished by expectations of a rebound on Wall Street later.

But following revelations that Facebook data wound up in the hands of a private company without the full knowledge of users, all the FAANGs are facing the threat of a regulatory backlash.

Related Articles

  • Manufacturing PMI goes boom!

    Manufacturing PMI goes boom!

    Local manufacturing companies generally passed on these higher cost burdens to clients by raising output prices in March. The increase was still solid, however, extending the current sequence of growth to 28 months.
    White House included in

    White House included in "potential venues" for discussed Trump-Putin meeting

    However, no preparations for a possible meeting have been discussed since the March 20 telephone call , Putin's aide said . Trump made the offer during a phone call between the two leaders, Russian presidential aide Yury Ushakov confirmed.
    Swansea Star Left Stunned By David de Gea's Brilliance

    Swansea Star Left Stunned By David de Gea's Brilliance

    David de Gea was barely needed, but he was after an hour with two superb saves from Tammy Abraham. "The first half was ideal ".
  • Vermont falls to 'lagging' in addressing opioid crisis

    Vermont falls to 'lagging' in addressing opioid crisis

    Two new studies suggest that legalizing medical marijuana in certain states led to a drop in opioid prescriptions, according to CNN .

    QQ: Holloway's coach says bout with Khabib not for undisputed title

    Ferguson (23-3) and Nurmagomedov have been booked to fight each other four times, yet all four fights have been called off. Speaking about the injury, UFC president Dana White told ESPN that Ferguson tore his LCL and needs surgery.
    Six Turkish troops killed in PKK attack

    Six Turkish troops killed in PKK attack

    The SDF has been at the forefront of the US -led coalition's strategy to defeat Islamic State militants. Macron and Erdogan have spoken several times on the phone since Turkey's operation began on January 20.
  • CAP Plans Casper Pinwheel Garden For Child Abuse Prevention Month

    CAP Plans Casper Pinwheel Garden For Child Abuse Prevention Month

    There will be a 303 pinwheels planted this year, one for every child victim of abuse and maltreatment CAP served in 2017. The center is set up so the child who has been victimized need only speak once about the experience.
    China's space station to enter Earth's atmosphere on April 2

    China's space station to enter Earth's atmosphere on April 2

    The first U.S. space station, the 74-ton Skylab, fell to Earth in an uncontrolled reentry in 1979. Beijing said on Friday it is unlikely for any large part of the craft to reach the ground.
    Condom-snorting challenge causes concerns

    Condom-snorting challenge causes concerns

    Another woman accidentally swallowed the condom and it blocked her appendix, leading to appendicitis . In videos , teens unwrap a sheath, snort it up one nostril and then pull it through their mouth.
  • New York Yankees @ Toronto Blue Jays, 4/1/18

    New York Yankees @ Toronto Blue Jays, 4/1/18

    With his two dingers, Stanton became the seventh Yankee with two homers on Opening Day, and the first since Joe Pepitone in 1963. The team's YES Network averaged a 1.46 rating for spring training telecasts, its highest ever and up 80 percent from past year .
    I Want Wilder Or Fury-Joshua

    I Want Wilder Or Fury-Joshua

    However Joshua and promoter Eddie Hearn both refuted Parker's claims, insisting that the referee had "perfect English". Beyond Wilder and Povetkin, the most risky tests are rematches against Parker and British rival Dillian Whyte.
    Experts haven't found 'precise source' of nerve agent used on spy

    Experts haven't found 'precise source' of nerve agent used on spy

    The tensions also are an outgrowth of USA sanctions on Russian Federation for meddling in the 2016 US elections. Russian officials are seeking to visit her in hospital.