Wall St shudders as trade war intensifies

Defense Secretary James Mattis welcomes Chinese Minister of National Defense Gen. Wei Fenghe to the Pentagon

Stocks fell sharply on Monday after China chose to raise tariffs on some USA goods as the ongoing trade war between the world's largest economies intensifies.

The recent run of losses has knocked almost 5% off the S&P 500 since hitting an all-time high on May 1, putting the index on course for the biggest monthly decline since December.

The Dow and S&P 500 suffered their worst days since early January, and the Nasdaq Composite had its biggest single-day loss of the year.

Stocks doing business in China got hit the hardest. The NASDAQ had its worst day so far this year and saw its biggest one-day drop since December 4, 2018. "The U.S. economy remains strong", noted Kevin Miller, CIO at E-Valuator Funds. Investor confidence that the two sides were close to a resolution had helped push the market to its best yearly start in decades. Boeing shares declined 4.9% amid speculation the airplane maker could be singled out by China in the trade war.

Providing critical information for the US trading day.

The broader S&P 500 index fell 69.53 points, or 2.4%, to 2,811.87. Meanwhile, the Russell 2000 of small-cap stocks has declined 5.7% over the past six sessions and re-entered correction territory Monday, down more than 10% from its August record.

Brent and USA crude futures had surged the previous day after top exporter Saudi Arabia said explosive-laden drones launched by a Yemeni-armed movement aligned to Iran had attacked facilities belonging to state oil company Aramco.

Barr Tabs Special Prosecutor to Look Into Origins of Russia Hoax
Huber, the United States attorney in Utah, is also examining aspects of the investigation, the Times reported . Durham is a career prosecutor who was nominated for his post as USA attorney in CT by Trump.

The administration followed through on Friday, increasing tariffs from 10 to 25 percent on $200 billion of Chinese goods. The price of soybeans slid 0.8% to $8.04 a bushel Monday. The falling price has put pressure on USA farmers.

The market had also seemed to shrug off the news that growth in China's industrial output had slowed more than expected, Ms Lee said.

"Such an inversion of the curve has often been accompanied, or followed, by a downturn in the USA economy and stock market", Mr. Higgins said.

Technology stocks took the heaviest losses Monday. Chipmakers Microchip Technology dropped 6.3% and Advanced Micro Devices lost 6.2%.

Bank stocks also fell sharply.

Dow Jones has rebounded after a 617 point drop yesterday. Utilities were the only sector to notch a gain.

"Supply-side disruptions along with simmering US-Iran tensions have supported oil prices however as market fundamentals remain tight for the current term", said Benjamin Lu, commodities analyst at Phillip Futures in Singapore.

Zuckerberg rejects call to break up Facebook
In the US, Federal Trade Commission (FTC) is now investigating Facebook's handling of user data and potential privacy violations. After Mark's congressional testimony previous year , there should have been calls for him to truly reckon with his mistakes.

On Tuesday, the yield on the 10-year Treasury rose to 2.41 percent from 2.40 percent late Monday.

Asian markets fell broadly.

The dollar was steady at 109.615 yen, having pulled away from a three-month low of 109.020 plumbed on Monday when trade war worries boosted investor demand for the safe-haven Japanese currency. European indexes were mostly down a bit more than 1%.

Coca-Cola Co's shares rose 0.7% after Morgan Stanley upgraded the stock to "overweight", saying higher growth has not been priced into the stock's valuation.

The energy sector led gains, collectively up 1.56 per cent, with Santos up 2.4 per cent to $7.13, Woodside Petroleum up 1.5 per cent to $36.21 and Origin Energy up 2.5 per cent to $7.44.

Investors have so far made it through the bulk of first quarter corporate earnings reports in decent shape. A day earlier, they were the only winners in the market.

Many market players "downplayed" the significance of the March inversion, he added, believing the Federal Reserve would sit on its hands so as not to derail the economic expansion.

Trump aide Kudlow acknowledges USA consumers pay for tariffs, not China
The president suggested that manufacturers who make goods in China could shift production to other countries to avoid the tariffs. On Friday May 10, 2019 President Donald Trump imposed sanctions on $200 billion (€178 billion) worth of Chinese goods.

Teva, which was specifically mentioned, sank 16.8%.

Related News:

Most liked

US Supreme Court Give Go Signal For Apple Antritrust Case To Proceed
To protect its interest, Apple has referred to a precedent ruling that was established by the Supreme Court in 1977. Apple is also under scrutiny by Dutch antitrust authorities over complaints about commissions in European markets.

Aston Villa vs. West Bromwich Albion - Football Match Report
The on-loan striker scored his 24th goal of the season in Saturday's first leg defeat before he was sent off. He said: "West Brom came with a gameplan to sit behind the ball and they capitalised on a mistake from us".

Government Brexit talks with Labour face deadline
Anger at the Brexit morass is fueling support for smaller parties ahead of a European Parliament election next week. Independence Party (though suffering net losses overall) made some gains in areas that had voted heavily to leave.

Aubameyang brace guides Arsenal past Burnley
After a goalless first half, Aubameyang claimed his 21st and 22nd Premier League goals of the campaign soon after half-time. In a season when the title was decided on the very last day, the race for the Golden Boot was decided on same day as well.

Beilein expected to talk to Bickerstaff about coaching role with Cavs
Now, Beilein will look to utilize his fantastic skills as a developer of talent to turn a rebuilding young team into a contender. The Athletic's Joe Vardon reports the Cavs' interviewing of Beilein was one of the few candidates not disclosed to the media.

Zarif: Suspicious Acts of Sabotage Escalating Regional Tensions
European Union leaders are scrambling to save the 2015 nuclear deal, which the United States pulled out of a year ago . The development in Saudi's local conflict with the Houthis opens a new front in its regional struggle with Iran.

Eden Hazard’s Real Madrid move to be confirmed after Europa League final
Chelsea are reportedly interested in Coutinho as a replacement for Real Madrid-bound Eden Hazard . Yes, I told the club a couple of weeks ago".

Hodeidah pullout going as planned, says UN
A United Nations source told Reuters on Saturday that the RCC would announce its assessment of the Houthi redeployment next week. Coalition forces, now massed 4km from Hodeidah port on the edges of the city, are to retreat 1km from two flashpoint districts.

Constance Wu explains Twitter rant
Sometimes even my closest friends are baffled at how I could value artistic challenge/difficulties over success/happiness. An ABC spokesman declined comment, and a Wu representative didn't immediately respond to an email.

Doris Day Dies: 'Pillow Talk' Star, Singer Dead at 97
This was the age when musicals transported you into a dreamworld of momentary escape and Doris Day was the wizard of the genre. She received the Presidential Medal of Freedom in 2004, and the Grammys gifted her a Lifetime Achievement prize in 2008.

Manchester City Won the Battle, But Liverpool Can Still Win the War
Last month, Van Dijk, who joined Liverpool from Southampton for £75 million last January, won the PFA Player of the Year award . Arsenal beat Burnley 3-1 while fellow Europa League finalists Chelsea were held to a goalless draw at Leicester Ciry.

US sends naval strike group as tensions rise with Iran
Central Command on Thursday, includes the guided missile cruiser USS Leyte Gulf and destroyers from Destroyer Squadron 2. State TV showed protesters marching after Friday prayers in Tehran and said similar marches had been held across Iran.

Azerbaijan Indicates Armenian Soccer Star Will Be Allowed In For Europa Final

Trump ratchets up tariff threat after talks show no progress
US President Donald Trump's increased tariffs on $200 billion (€178 billion) of Chinese goods entering the United States took effect on Friday.

Trump says North Korea's recent missile launches not breach of trust
Kim declared an end to the testing of nuclear weapons and long-range missiles during rapid rapprochement a year ago . North Korea and the United States are now deadlocked in diplomacy meant to rid the North of its nuclear arsenal.