Stocks made history today.
But it wasn’t really history that anyone should be proud of.
After 5 consecutive losses last week, the S&P lost more than 1% today…MUCH more. It was the first time ever that we saw a Monday loss bigger than 1% following a week of 5 straight losses.
Why the big slide?
Last week, going against the recommendation of his advisors, President Trump rattled the markets with a surprise additional tariff of 10% on Chinese goods. And today China retaliated.
China officials told Chinese companies to stop buying U.S. agricultural products. And to make matters worse, the Chinese currency dropped to 2008 lows against the dollar.
Chinese officials said it the currency drop was all because of the trade war. But Trump blamed the Chinese government with manipulating its currency, creating an unfavorable competitive trade advantage by not supporting its currency.
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Stocks were hammered on the escalating trade war. With losses of 2.9% to 3.5%, the major indices suffered their worst losing day of the year.
The S&P is down almost 5% since President Trump announced the planned tariff increase last week. And the NASDAQ is on a 6-day losing streak…its worst losing streak since 2016.
Here’s where the major indices ended the day:
- The S&P finished with a 3.0% loss. Down 87 points, the S&P ended at 2,845.
- The DOW ended lower by 2.9%. Dropping 767 points, the DOW closed at 25,718.
- The NASDAQ was down 3.5%. With a 278 point loss, the NASDAQ finished at 7,726.
Crude Oil (CL) finished lower today. This makes 5 out 6 days with losses. With an 1.8% loss, CL ended at $54.64 a barrel.
Today tech stocks and stocks most sensitive to global trade were hit hardest.
Apple (AAPL) dropped 5.3% and Facebook (FB) suffered a 4.0% loss. Deere (DE) was down 4.8%.
With today’s slide the Volatility Index (VIX…aka “Fear Index”) saw its biggest1-day jump since October, up 4.4%.
Source: RockwellTrading by Markus Heitkoetter | Original Link