Stock markets crashed lower on Thursday as investors eyes shifted from Wednesday’s Federal Reserve policy statement to President Trump hitting China with 25% tariffs on $60 billion of Chinese goods and became fearful of trade wars.
Stock markets crashed lower on Thursday as investors eyes shifted from Wednesday’s Federal Reserve policy statement to President Trump hitting China with 25% tariffs on $60 billion of Chinese goods and became fearful of trade wars.
With markets already vulnerable with the Facebook $FB scandal hitting the FANG and Nasdaq stocks and the Fed raising rates investors didn’t need more reasoons to exit. We saw money flee stocks into bonds with the fear magnet 10-year Treasury yield falling 6 basis points to 2.82%. The Dow Jones industrial index fell 2.9%t, the S&P 500 dumped 2.5% and the Nasdaq composite fell 2.4% with the Russell 2000 small cap index down 2.1%.
Fear increased with the put/call ratio up at 1.17.
The biggest hits in the DJIA were to American exporters and conglomerates. Caterpillar $CAT, Boeing $BA), 3M $MMM and JPMorgan $JPM were all down 4% to 6%.
Chinese stocks were hit also NetEase $NTES Baidu $BIDU, both part of the Nasdaq 100, lost over 5%. Meanwhile the biggest pounding was for shares of drugmaker AbbVie $ABBV crashing almost 13% after scrapping plans to seek accelerated approval for a lung cancer drug because of a dissappointing trial mid-stage trial. Not a day to miss a trial for a biotech company.
Friday gets interesting as we see how China and Australia and Asian markets respond before European and American traders have to decide on weekend risk with Trump tweets and China statements.
From The TradersCommunity News Desk