New York: American actions suffered steep losses on Monday while US President Donald Trump intensified his attacks on the president of the Federal Reserve Jerome Powell, which prompted investors to worry about the independence of the Central Bank, even if they are struggling with the effects of the current and erratic trade war.
The three main clues dropped by more than 2%, with strong losses in the “Magnifice Seven” group of MEGACAP growth actions weighing the heaviest on the Nasdaq, Lourdes Technologies.
If the S&P 500 ends at 20% or less its record of June 19, this will confirm that the index has entered a lower market on that date. The Bellwether index is 17% below this level.
Trump degenerated his criticism from Powell on Monday, saying that the American economy was heading for a slowdown “unless Mr. Too late, a major loser, drops interest rates now”, in a social post of bellicose truth that has raised concerns about Fed’s autonomy.
“The last title of the day is Trump is not satisfied with Powell’s performance, and he creates more uncertainty … In a weak environment,” said Adam Sarhan, managing director of 50 Park Investments in New York.
“The fact that we are so broken down today after a long weekend tells me, OK, the investors went in the weekend, they looked at the situation, and they see more uncertainty, no less uncertainty,” added Sarhan. “It is clear that investors are frightened and fear takes over.”
Sino-Us trade fault has deepened after Beijing warned other countries against agreements to conclude with the United States at the expense of China, adding fuel to the spiral war between the two largest economies in the world.
The industrial average of Dow Jones .dji dropped by 1,244.72 points, or 3.19%, to 37,897.51. The S&P 500 .SPX lost 172.69 points, or 3.27%, at 5,110.12 and the NASDAQ Composite .IXICFELL 566.85 points, or 3.48%, at 15,719.60.
The 11 major sectors of the S&P 500 were in negative territory, with the consumption discretion. SPLRCD and Tech. SPLRCT undergoing the greatest percentage losses.
The first quarter of profits moves in a higher speed this week with dozens of businesses closely monitored because of their report. Until now, out of the 59 companies that have declared 68% have beaten Wall Street’s expectations, according to LSEG data.
On Thursday, analysts expect the growth in S&P 500 profits in the first quarter of 8.1%, in annual shift, or down compared to the growth of 12.2% planned at the start of the quarter, according to LSEG.
The notable gains on this week’s file include the magnificent seven members Tesla tsla.o and alphabet Googl.o, and a multitude of high -level industrialists, including Boeing Ba.n, Northrop Grumman Noc.n, Lockheed Martin LMT.N and 3m Mmm.n.
Artificial intelligence Nvidianvda.o heavy goods vehicles fell 6.1% after Reuters reported that Huawei Technologies planned to start mass expeditions of an advanced AI chip for customers in China next month.
Fis Fis.n won 2.7% after a brokerage upgrade.
There were more than avocados by a ratio of 6.53 to 1 on the NYSE. There were 70 new heights and 151 new stockings on the NYSE.
On the Nasdaq, 1,022 shares increased and 3,324 fell down the inferiority problems by a ratio of 3.25 to 1.
The S&P 500 posted a new 52 -week top and nine new stockings while the Nasdaq Composite recorded 27 new heights and 168 new stockings.