Tech Giants, Overall US Market Slide Amidst Trade Fears
Both major US indices fell overnight as markets anticipated a move by the US Government to impose another $US200 billion of tariffs on Chinese goods.
The Dow Jones Industrial Average lost 92.55 points, or 0.4 per cent, to 26,062.12, while the Nasdaq composite lost 114.25 points, or 1.4 per cent, to 7,895.79.
The two governments have already imposed 25 per cent tariffs on each other’s goods, and the next round, announced at about 9.30am Sydney time, not only represents another large escalation in the dispute but is also likely to add greater uncertainty and put significant pressure on the world’s two largest economies.
The uncertainty affected the technology sector, which had performed relatively well over the past week, and some of the market leaders suffered big falls.
Apple fell 2.7 per cent to $217.88, while fellow Trillionaire Amazon lost 3.2 per cent to $1908.03 after The Wall Street Journal published an article yesterday about suspected data leaks and bribery from the company’s staff.
Netflix fell 3.9 per cent to $350.35, Twitter shed 4.2 per cent to $28.86, and Facebook fell 1.07 per cent to $160.58.
The US dollar also fell against all major currencies on Monday, while indices in Europe and Asia almost all uniformly fell amidst the trade turmoil: the local S&P/ASX 200 was one of the only markets in the region to record a gain, of 0.3 per cent.