Stocks are closing sharply lower as an escalating trade war between the U.S. and China rattles investors.
Technology companies, which do a lot of business with China and would stand to lose greatly in an extended trade battle, fell far more than the rest of the market Monday.
Apple gave up almost 6%. Industrial stocks including Deere and Boeing also fell sharply.
Utilities, a haven for fearful investors, were among the few stocks that rose. Prices for other safe-play assets like bonds and gold also rose.
The Dow Jones Industrial Average sank 617 points, or 2.4%, to 25,324.
The S&P 500 fell 69 points, or 2.4%, to 2,811.
The Nasdaq, which is heavily weighted with technology stocks, plunged 269 points, or 3.4%, to 7,647, its biggest drop of the year.
Every one 30 companies that make up the Dow Jones index at one point was in negative territory.
China announced tariff hikes Monday on $60 billion of American goods in retaliation for President Donald Trump's latest penalties on Chinese products.
Roughly 5,000 items are affected including cotton, grains like wheat and wine. Other products like machinery and aircraft parts are also affected. (AP)
There is no reason for the U.S. Consumer to pay the Tariffs, which take effect on China today. This has been proven recently when only 4 points were paid by the U.S., 21 points by China because China subsidizes product to such a large degree. Also, the Tariffs can be.....
— Donald J. Trump (@realDonaldTrump) May 13, 2019
...completely avoided if you buy from a non-Tariffed Country, or you buy the product inside the USA (the best idea). That’s Zero Tariffs. Many Tariffed companies will be leaving China for Vietnam and other such countries in Asia. That’s why China wants to make a deal so badly!...
— Donald J. Trump (@realDonaldTrump) May 13, 2019
..There will be nobody left in China to do business with. Very bad for China, very good for USA! But China has taken so advantage of the U.S. for so many years, that they are way ahead (Our Presidents did not do the job). Therefore, China should not retaliate-will only get worse!
— Donald J. Trump (@realDonaldTrump) May 13, 2019
