U.S. stocks took heavy losses on Monday, seemingly in response to new Chinese tariffs on U.S. goods and widespread troubles among American technology companies.
The Dow Jones industrial average lost 459 points Monday, a 1.9 percent loss, after falling by more than 700 points hours before closing. 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.
Investors fear the impact of a growing trade war between the U.S. and China.
China announced before markets opened Monday that it would impose a 15 percent tariff on more than 120 goods imported from the U.S., including pork, fruit and nuts. The levies were ordered as retaliation for President Trump’s enacted tariffs of 25 and 10 percent on foreign steel and aluminum, respectively.
China is expected to announce further tariffs on U.S. goods in response to the $60 billion in proposed levies that Trump plans to impose on Chinese imports.
Stocks took as nosedive as soon as trading began Monday. Losses were widespread across all 12 sectors of the market, with consumer goods (2.8 percent), technology (2.4 percent) and financials (2.1 percent) taking the hardest hits. All three sectors are particularly vulnerable to shifts in trade policy.
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Stocks plummet after China announces retaliatory tariffs on US goods https://t.co/LnauU5DWjk pic.twitter.com/FTdVxMsiK6
— The Hill (@thehill) April 2, 2018
My nest egg is losing money by the minute every time Little Donnie has a temper tantrum.
I don’t know if I can hang on with him as president till 2020. Please, Mueller, find something…anything…to push this tyrant out the door.
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