US Stocks Fell Monday in Response to Pending Trade Issues
$DIA, $SPY, $QQQ, $RUTX, $VXX
The escalating trade dispute between the US and other leading economies effected US stocks Monday, pushing the S&P 500 and NAS Comp to their biggest losses in more than 2 months.
Losses were widespread
Technology stocks suffered the most, with the NAS Comp falling 2.5%, as the US Treasury Department is said to be drafting curbs that would block firms with at least 25% Chinese ownership from buying US tech firms, a Treasury official said Sunday.
US Treasury Secretary Steven Mnuchin said Monday that the restrictions would apply not specifically to China but “to all countries that are trying to steal our technology.”
The S&P technology index dropped 3.0%, set for its biggest 1-day fall in 3 months. The Philadelphia Semiconductor index dropped 3.7% as shares of chipmakers, which derive much of their revenue from China, got hammered.
The CBOE Volatility (VIX) (ndex, known as Wall Street’s fear gauge, spiked to its highest mark in nearly a month.
The FAANG stocks, which have led momentum in US stocks, were lower after having hit record intra-day highs last week.
Monday, the major US stock market indexes finished at: DJIA -328.09 at 24252.80, NAS Comp -160.81 at 7532.03, S&P 500 -37.81 at 2716.81
Volume: Trade on the NYSE came in at 900-M/shares exchanged
Declining issues outnumbered advancing ones on the NYSE by a 3.49-to-1 ratio, and on the NAS, a 3.68-to-1 ratio favored decliners.
The S&P 500 posted 7 new 52-week highs and 18 new lows, the NAS Comp recorded 60 new highs and 60 new lows.
- NAS Comp +9.1% YTD
- Russell 2000 +8.0% YTD
- S&P 500 +1.6% YTD
- DJIA -1.9% YTD
Monday’s action has the technicals Neutral in the near to mid-term.
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