DJIA Finished Off 724 Points, Markets Do Not Like Trade Wars
$DIA, $SPY, $QQQ, $VXX
The DJIA fell more than 700 pts on trade fears, tumbling back into correction territory as US stocks plunged the most in 6 weeks amid the threat of an escalating trade war with China that has the potential to disrupt global growth.
At the Closing Bell
The DJIA was down 724 pts, or 2.9%, at 23,958.
The S&P 500 slid 68 pts, or 2.5%, to 2,643.
The NAS Comp fell 178 pts, or 2.4%, to 7,166.
Volume: Trade on the NYSE came in at: 950-M/shares exchanged
The 10-year US Treasury yield slid toward 2.8% and Gold advanced with the JPY, as investors sought safe havens.
The USD rebounded.
The market does not like trade wars, the market does not like the Fed being adamant about raising rates even with a Dovish bias
The US economy has been pretty strong, the labor market has less slack, but there’s nothing to really get fired up about and try to normalize rates to a level way above where we are now, and perhaps the Fed will see that too going forward.
We did see that the policy makers sought to reassure markets that it’s in no hurry to raise rates even as it lifted growth projections for the world’s largest economy.
President Trump’s 1st trade action directly aimed at China comes as policy makers including IMF Managing Director Christine Lagarde warned of a global trade conflict that could undermine the broadest world recovery in years.
This week’s selloff in tech stocks is on pace to be the worst since early February.
Other notable decliners Thursday included Accenture Plc (NYSE:ACN) and Micron Technology Inc.(NASDAQ:MU)
West Texas Crude Oil (USO) fluctuated before falling and the Australian Dollar (AUD) slipped after the country’s unemployment rate climbed.
The British Pound (GBP) initially jumped after the country’s central bank voted 7-2 to maintain interest rates, but pared as investors digested comments from policy makers that were not overtly Hawkish.
The Stoxx Europe 600 Index fell 1.7% and the MSCI Asia Pacific Index was little changed.
The UK’s FTSE 100 Index dipped 1.5%, touching the lowest in 15 months.
The MSCI Emerging Market Index fell 1.2%.
- NAS Comp +3.8% YTD
- S&P 500 -1.1% YTD
- DJIA -3.1% YTD
- Russell 2000 +0.6% YTD
HeffX-LTN’s Market Indexes Technical Analysis