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Inventories fell again on Monday, fearing that the Trump government would aggravate its trade dispute with China by imposing tariffs on all remaining goods that the United States imports from that country.
The drops came during another dizzying trading day. The Dow Jones industrial average oscillated between a gain of 352 points and a loss of 566, before closing 245.39 points, or 1%, to 24,442.92.
Bloomberg News announced that the Trump administration would impose tariffs on the remaining US imports from China if the presidents of the two countries did not make a substantial progress in mitigating the trade dispute next month. Meanwhile, the corporate earnings season is in full swing and a number of large companies have warned that existing rates have increased their costs.
Technology and Internet companies, industrial companies and retailers suffered heavy losses following the Bloomberg report, as Wall Street's recent surge in volatility continued.
The Standard & Poor's 500 index fell 9.4% in October and is on the brink of its biggest monthly loss since February 2009, just before the market reaches its lowest point in the financial crisis. 2008-09.
The S & P 500 index fell 17.44 points, or 0.7%, to 2,641.25 Monday. The state-of-the-art Nasdaq composite slipped 116.92 points, or 1.6%, to 7,050.29. The Russell 2000 stock index of smaller companies fell 6.51 points, or 0.4%, to 1,477.31.
Inventories have fallen sharply since early October, breaking a long period of relative calm during the summer. Transactions have been particularly volatile in recent days.
Among industries, Boeing fell 6.6% to $ 335.59. Some early gains for technology stocks and the Internet have also disappeared. Microsoft dropped 2.9% to $ 103.85. Alphabet, Google's parent company, dropped 4.5% to $ 1,034.73.
Amazon.com fell 6.3% to $ 1,538.88. The online retailer also fell Friday after announcing weak sales and gave a lower-than-expected revenue estimate for the quarter, which includes the shopping season for the holidays. Its shares traded at more than $ 2,000 per share in early September and plunged 24.5% since.
The S & P 500, the main index of the US stock market, fell 9.9% from its record high of September 20th. The Nasdaq fell 13% from its record of August 29th.
For most of this year, investors hoped that the United States and China would settle their trade policy disputes and that a large number of tariffs would be reduced or abolished. But in recent weeks, they have lost some of their trust. Their fear that the dispute will last longer and have larger effects has contributed to the market downturn.
The effects of higher tariffs could be particularly severe for technology companies, which manufacture many of their products in China, and for industrial companies, which already pay higher prices for metals. With the United States and China being the largest economies in the world and with the world's largest trading relationship, higher import taxes could also slow world economic growth and increase inflation.
Although most tech companies fell on Monday, the Red Hat open source software publisher recorded a 45.4% rise to $ 169.63, reversing its losses since the beginning of the year. year after IBM agreed to buy it for $ 34 billion worth. IBM President and CEO, Ginni Rometty, said the deal would make IBM the world's largest hybrid cloud provider, which means it will offer businesses a combination of on-premise, private, and public third-party cloud services. IBM fell 4.1% to $ 119.64.
The prospect of reducing barriers to trade has helped automakers. Car manufacturers rose after Bloomberg News announced that Chinese regulators intended to propose reducing the tax on imported cars by 10% to 5%. The trade war between the United States and China has hurt sales, and this slowdown is one of the factors that hurt car manufacturers' inventories this year.
Ford climbed 3.3% to $ 9.28. BorgWarner auto parts retailer advanced 4% to $ 39.56. After Cooper Tire & Rubber reported higher earnings than analysts expected in the third quarter, its stock jumped 21.4% to $ 30.89.
The German DAX gained 1.2%, with Volkswagen, Daimler and BMW making big gains. The FTSE MIB index of Italy rose 1.9% after Standard & Poor's did not degrade its credit rating. The new Italian government plans to increase its spending and EU leaders have asked it to change its plans.
The Mexican stock index dropped 4.2% after the elected president, Andres Manuel Lopez Obrador, said he would respect the outcome of a referendum that rejected a new partially built airport for Mexico. He said that 70% of voters opposed the $ 13 billion project.
The Brazilian Bovespa rose in the morning after being elected president of far-right politician Jair Bolsonaro, before losing 2.2%. Shares climbed earlier this month after Bolsonaro led the previous round, with investors favoring left-wing parties.
Bond prices have slipped. The yield on the 10-year Treasury Note rose from 3.07% to 3.08%.
The price of US crude oil fell 0.8% to $ 67.04 per barrel in New York. Brent, used for the price of oil in international markets, fell 0.4% to 77.34 dollars a barrel in London.
Wholesale gasoline rose 0.5% to $ 1.82 a gallon. Heating oil declined 0.8% to $ 2.28 a gallon. Natural gas was unchanged at $ 3.19 per 1,000 cubic feet.
Gold fell 0.7% to $ 1,227.60 an ounce. Silver fell 1.8% to $ 14.44 an ounce. Copper has changed little at $ 2.74 per pound.
The dollar rose from 111.85 yen to 112.35 yen. The euro rose from 1.1412 dollars to 1.1390 dollars.
UPDATES:
.: 3:30 p.m. This article has been updated with closing prices and background.
1:20 p.m.: This article has been updated with the closing of the markets.
12:35: This article has been updated with the movement of indexes.
This article was published at 7:40 am
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