Stocks woke up to a major case of the Monday’s this morning as we saw the S&P 500, Dow Jones, and Nasdaq all sell off to levels below their 50-day averages. In fact, we saw Nasdaq futures drop a whole 1.8% followed by 1.35% and 1.25% for the S&P 500 and Dow Jones futures respectively. This come on the heels of fresh fuel being added to the U.S.-China trade war as President Trump cited escalating tariffs.
Tech giants with a heavy Chinese exposure saw their stock tumble Monday due to these new tariffs as Apple stock fell 3% Monday morning adding to its poor performance at the ends of last week. Amazon also felt these negative reverberations falling 6.2% and clearing the bottom of its 50-day line.
In addition to affecting U.S. markets, these new tariffs also put a negative spin on foreign currency as the yuan cleared 7 for the first time since 2008 and hit record offshore lows. It should also be noted that according to Investor’s Business Daily, China will supposedly be halting all purchases of U.S. agricultural goods.