U.S. stocks extended the biggest drop in almost three weeks as rising pessimism that trade tensions with
China will persist sent technology and multinational companies tumbling. Treasuries climbed, oil fell and the yen strengthened.
The S&P 500 sank to session lows after the Financial Times reported that the U.S. turned down an offer of preparatory discussions. Chipmakers plunged more than 3 percent, with every member of the Philadelphia Semiconductor Index in the red.
Caterpillar and DowDuPont led declines in the Dow Jones Industrial Average of more than 400 points. “Investors obviously are still a little bit edgy and therefore we would expect periods of volatility to continue,” said Mark Hackett, chief of investment research at Nationwide Funds Group, which manages $60 billion. “As the headlines continue to get more nerve wracking with regards to a global slowdown and trade wars and government shutdowns, it’s easy to spook investors, but we think those are temporary versus permanent.”
It has been a constant refrain in the Subscriber’s video and audio over the last week that a short-term overbought condition has replaced a short-term oversold condition so the risk of at least consolidation is high.Click HERE to subscribe to Fuller Treacy Money Back to top