Wall Street slides on rout in tech stocks

Marco Green
April 3, 2018

Selling was heaviest in technology stocks.

U.S. stocks dropped in early trading as weakness in technology shares persisted amid renewed Presidential criticism of Amazon.com and retaliatory tariffs from China.

The first trading day of the second quarter began with a broad selloff concentrated in the technology and consumer discretionary sectors, as losses by Amazon.com, Tesla and Microsoft, among others, took center stage from retaliatory trade measures China unveiled on Sunday. Tariffs imposed by China on about $3 billion worth of US goods will take effect today, targeting a range of products from pork to wine and fresh fruits.

China announced April 1 that it had begun imposing tariffs of 15 to 25 percent on 128 US products in a move seen as retaliation against Trump's increased tariffs on imports of steel, aluminum and some Chinese goods.

"That's going to start stoking fears of trade wars and protectionism".

"And if it escalates, the questions could be on if China is going to buy our bonds".

Guggenheim Dow Jones Industrial Average Dividend ETF (NYSEARCA:DJD) announced a quarterly dividend on Monday, March 26th, Wall Street Journal reports. The S&P 500 was down 45 points, or 1.7 percent, at 2,595 and the Nasdaq Composite was down 156 points, or 2.2 percent, at 6,907.

Trump is separately preparing to impose tariffs of more than $50 billion targeting "largely high-technology" Chinese products.

Ten of the 11 major S&P sectors were lower, with only utilities gaining.

The electric car-maker's losses extend last week's near 14 per cent decline as investigations of a fatal California crash and a Moody's credit downgrade weighed on the stock.

Health insurer Humana Inc's shares closed up 4.4 percent on news it was in talks with Walmart to expand their partnership or possibly be acquired by the retailer. Walmart fell more than 2 percent.

Shares of Tesla were down 5.2 per cent after the company was reported to be making 2,000 Model 3s per week, missing its 2,500 target.

Other reports by Click Lancashire

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