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NEW YORK – Fear that the Trump administration is announcing tariffs on all remaining imports from China has helped push American stocks from a strong early gain to another strong loss on Monday.
Technology companies fell again after Bloomberg News announced that the US was considering new tariffs if the two sides did not advance trade negotiations next month.
Technology and Internet companies, manufacturers and retailers suffered heavy losses as the recent volatility crisis on Wall Street continued. The S & P 500 index fell 9.4% in October and is on the verge of its worst monthly loss since February 2009. It was just before the market reached its lowest point of the financial crisis of 2008-09.
Bloomberg News announced that the Trump administration would put tariffs on the rest of the country's imports from China if Presidents Donald Trump and Xi Jinping did not make substantial progress to ease the trade dispute next month.
Up to now, the US has so far imposed $ 250 billion in taxes on imported Chinese products, about half of all imports from China, and taxes on most these products are expected to increase on January 1 st. . China has increased import tariffs by $ 110 billion.
The S & P 500 index fell 17.44 points, or 0.7%, to 2,641.25.
The Dow Jones Industrial Average index gained up to 352 points Monday morning but closed down 245.39 points, or 1%, to 24,442.92. He fell to 566 during the day.
The Nasdaq composite, which is heavily weighted by technology stocks, lost 116.92 points, or 1.6%, to 7,050.29. The Russell 2000 index of shares of small companies yielded 1,447.31 points (6.51 points), or 0.4%.
Shares have plunged since early October and trade has been particularly volatile in recent days.
Among industrials, Boeing fell 6.6% to $ 335.59. Some early gains for technology stocks and the Internet have also disappeared. Microsoft paid 2.9% to $ 103.85. Alphabet, the parent company of Google, lost 4.5% to 1,034.73 USD.
Amazon.com fell another 6.3% to $ 1,538.88. The online retailer 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 over $ 2,000 per share in early September and have fallen by 24.5% since then, their worst decline in two and a half years.
The S & P 500, the main index of the US stock market, fell 9.9% from its record high of 20 September. The Nasdaq plunged 13% from its August 29 record.
For most of this year, investors have been hopeful that the US and China will settle their trade disputes, but in recent weeks they have lost some of their trust.
The increase in tariffs could slow down economic growth and increase inflation. The effects could be particularly serious for technology companies, which manufacture many of their products in China, and for manufacturers.
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