President Trump stoked trade war fears with both China and the EU today
Fresh off its worst week since March, the Dow was pummeled today, down nearly 500 points at its intraday low. While the blue-chip index pared some of those losses by the close, it still dropped more than 300 points, and finished beneath its 200-day moving average for the first time in nearly two years. The S&P 500 and the tech-heavy Nasdaq were not spared in the bloodbath, either, suffering their worst sessions since April 6. Elsewhere, Wall Street's "fear gauge" roared to life, posting its highest close in two months.
Trade tensions reached a fever pitch amid reports that President Donald Trump may put in measures to prevent Chinese-owned entities from investing in U.S. tech companies. However, Trump advisor Peter Navarro said the sell-off was a "large overreaction," saying there are currently no plans to implement investment restrictions right now. Trade relations with Europe are equally icy, though, after the European Union (EU) implemented its tariffs over the weekend -- triggering a tweet from Trump warning of "more than Reciprocity by the U.S.A."
Continue reading for more on today's market, including:
The Dow Jones Industrial Average (DJI - 24,252.80) sunk 328.1 points, or 1.3%, breaching its 200-day moving average for the first time since the Brexit drop on June 27, 2016. Walmart (WMT) led four blue-chip advancers with a 1.9% gain, and Intel (INTC) paced the 26 losers with a 3.4% slide.
The S&P 500 Index (SPX - 2,717.07) gave back 37.8 points, or 1.4% and the Nasdaq Composite (IXIC - 7,532.01) dipped 160.8 points, or 2.1%. It was both indexes worst days since April 6.
The Cboe Volatility Index (VIX - 17.33) gained 3.6 points, or 25.9%, its biggest single-day gain since May 29.
5 Items on Our Radar Today
- In an effort to avoid the retaliatory tariffs from the EU, Harley-Davidson (HOG) will move some its motorcycle production out of the U.S. The famed motorcycle company reported that each bike will be roughly $2,200 more expensive to export, although it won't raise the retail price tag. (CNNMoney)
- Earlier today, the Food and Drug Administration (FDA) approved Epidiolex, a treatment for epilepsy developed by GW Pharmaceuticals (GWPH). It is the country's first FDA-approved cannabis-based drug. The treatment can now be used on patients with early childhood epilepsy. (Reuters)
- Analyst: This drug stock could soar 173%.
- Options bears blasted this sinking semiconductor ETF.
- OKTA stock is flashing a buy signal.
Data courtesy of Trade-Alert
Oil, Gold Pull Back With U.S. Equities
Oil dropped today in the wake of the Organization of the Petroleum Exporting Countries (OPEC) decision to increase crude production. August-dated crude futures lost 50 cents, or 0.7%, to settle at $68.08 per barrel by the close.
Gold futures also fell today, in spite of a softening dollar, as global trade tensions failed to fuel "safe haven" demand for the metal. August-dated gold futures gave back $1.80, or 0.1%, to end at $1,268.90 an ounce, its lowest settlement of 2018.