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
(AMZN), Tesla (TSLA) and Microsoft (MSFT), among others, took center
stage from retaliatory trade measures China unveiled on Sunday.
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."
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 fell 58.99 points, or 2.23 percent, to 2,581.88 and the
Nasdaq Composite dropped 193.33 points, or 2.74 percent, to 6,870.12.
(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
All 11 major sectors of the S&P 500 closed lower,
with the biggest losses seen by the consumer discretionary and
technology indexes, which were down 2.8 percent and 2.5 percent,
The tech-heavy Nasdaq was dragged lower by Microsoft (MSFT), Intel (INTC), Apple Inc (AAPL), Facebook (FB) and Alphabet (GOOGL).
of Tesla Inc (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
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.
Humana Inc's (HUM) shares closed up 4.4 percent on news it was in talks
with Walmart (WMT) to expand their partnership or possibly be acquired
by the retailer. Walmart stock fell 3.8 percent.
yields 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.