Business

Dow Plummets Over 700 Points as Amazon Tumbles Amid Trade War Fears

In response, China announced it is raising tariffs on $3 billion of US goods including pork, apples and steel pipe, increasing the risk of a broader conflict that might depress global trade.

Stocks closed sharply lower on Wall Street as technology companies took heavy losses and investors anxious about escalating trade tensions with China.

On Monday, the Dow Jones Industrial Average closed down 1.9%, or 458.92 points, which nearly matched the benchmark index's drop in the entire first quarter, when it tumbled 616 points. The S&P 500 fell 58.99 points, or 2.23 per cent, to 2,581.88 and the Nasdaq Composite dropped 193.33 points, or 2.74 per cent, to 6,870.12.

The S&P 500 fell 69 points, or 2.6 percent, to 2,570.

In Europe, Germany's DAX fell 0.8 per cent to 11,999 while London's FTSE 100 declined 0.2 per cent to 7,037.

Shares of Tesla Inc (TSLA.O) ended the day down 5.1 percent after the company was reported to be making 2,000 Model 3s per week, missing its 2,500 target. The company has lost $83 billion in market value since mid-march.

Investors will also be watching the testimony of Facebook leader Mark Zuckerberg before Congress on Tuesday and the possibility of further attacks against Amazon by President Trump through his Twitter account.

Elsewhere, the euro was flat at $1.23 while the dollar rose 0.3 per cent to 106.23 yen. Trump repeatedly criticized the company lately over issues including taxes and Amazon's shipping deals with the U.S. Postal Service.

Large technology companies also saw their shares continue to slump, with Amazon (AMZN), Apple (AAPL), Google-parent Alphabet (GOOGL) and Facebook (FB) all seeing declines on the day.

Spotify Technology SA shares opened at $165.90, almost 26 percent above the reference price of $132 a share set by the NYSE late on Monday. He then proceeded to exempt most major USA trading partners from the levies, leaving the bulk of the measures aimed squarely at Beijing. It wasn't the only market favorite to fall out of favor Monday. The tax on USA goods could include pork, soybeans and fruit as well as aircraft.

Health insurer Humana Inc's (HUM.N) shares closed up 4.4 percent on news it was in talks with Walmart (WMT.N) to expand their partnership or possibly be acquired by the retailer.

The electric automaker'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.

Elsewhere in the region, Sydney's S&P-ASX 200 shed 0.1 percent to 5,752.70.

COMMODITIES: Benchmark U.S. crude lost $1.71, or 2.7 percent, to $63.23 a barrel in NY. Yield on 10-year Treasury note rose after dropping to two-month lows on Monday, boosted by safety buying as stocks tumbled. The Hang Seng in Hong Kong was closed as well. Brent crude, used to price global oils, slid $1.52, or 2.2 percent, to $67.82 a barrel in London.



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