The sell-off was sparked by fears of an escalating trade war between the U.S. and China
The Dow dove deep into the red today, ending with a loss of more than 470 points, as traders brace for increased tariffs on $200 billion in Chinese goods. Specifically, should the two countries not reach a trade deal, U.S. Trade Representative Robert Lighthizer said the U.S. will hike tariffs on Friday, May 10, echoing a weekend threat from President Donald Trump. The dip marks the index's steepest one-day loss since early January, with the S&P and Nasdaq suffering their worst sessions since March 22.
Continue reading for more on today's market, including:
- Spruce Capital: This FAANG partner could fall 85%.
- The seven-figure options bet on 3M stock.
- This pharma stock plummeted on a rival's FDA nod.
- Plus, GLUU stock on sale; a bear signal just flashed for one car stock; and options bulls are all-in ahead of Etsy earnings.
The Dow Jones Industrial Average (DJI - 25,965.09) lost 473.4 points, or 1.8%, in today's trading. All 30 components finished in the red, with Chevron (CVX) taking the smallest loss with a 0.1% drop, and Boeing (BA) tumbling to the bottom, ending 3.9% lower.
The S&P 500 Index (SPX - 2,884.05) was 48.4 points, or 1.7%, lower at the close, while the Nasdaq Composite (IXIC - 7,963.76) suffered a 159.5-point, or roughly 2%, drop.
The Cboe Volatility Index (VIX - 19.32) gained 3.9 points, or 25.1% -- its biggest one-day percentage gain since Dec. 4.
5 Items on our Radar Today
- Disney announced today that it would be postponing its anticipated "Avatar 2" movie to December 2021 -- a year after its former release date. The entertainment giant also set release dates for new "Star Wars" films, for 2022, 2024, and 2026. (CNBC)
- Amazon just backtracked on its decision to make its 12th cashier-free Amazon Go store, which opened today in New York, cash-less. The decision comes amid heavy criticism that not accepting paper money discriminates against those who don't have bank accounts. The remaining 11 stores don't accept cash just yet, but will move toward accepting the paper payment soon. (MarketWatch)
- Buy the earnings dip on GLUU stock, says one signal.
- This car stock's surge could cool soon, if history is any indicator.
- Why option bulls think ETSY shares could enjoy another earnings win.
Data courtesy of Trade-Alert
Oil Hits Five-Week Low on U.S.-China Trade Conflict
With conflict between the U.S. and China resurfacing, oil prices fell to a five-week low. June-dated black gold lost 85 cents, or 1.4%, today, dropping to $61.40 per barrel.
Gold finished higher, however, as the trade conflict bolstered the safe-haven appeal of the precious metal. Gold for June delivery finished $1.80, or 0.1%, higher, at $1,285.60 an ounce.