Wall Street and the dollar tumble as investors retreat further from the United States
Wall Street weakened Monday as investors worldwide get more skeptical about U.S. investments because of President Donald Trump바카라 게임 웹사이트s trade war and his criticism of the Federal Reserve, which are shaking the traditional order.
The S&P 500 sank 2.4% in another wipeout. That yanked the index that바카라 게임 웹사이트s at the center of many 401(k) accounts 16% below its record set two months ago.
The Dow Jones Industrial Average dropped 971 points, or 2.5%, while losses for Tesla and Nvidia helped drag the Nasdaq composite down 2.6%.
Perhaps more worryingly, U.S. government bonds and the value of the U.S. dollar also sank as prices retreated across U.S. markets. It바카라 게임 웹사이트s an unusual move because Treasurys and the dollar have historically strengthened during episodes of nervousness. This time around, though, it바카라 게임 웹사이트s policies directly from Washington that are causing the fear and potentially weakening their reputations as some of the world바카라 게임 웹사이트s safest investments.
Trump continued his tough talk on global trade as economists and investors continue to say his stiff proposed tariffs could cause a recession if they바카라 게임 웹사이트re not rolled back. U.S. talks last week with Japan failed to reach a quick deal that could lower tariffs and protect the economy, and they바카라 게임 웹사이트re seen as a 바카라 게임 웹사이트test case,바카라 게임 웹사이트 according to Thierry Wizman, a strategist at Macquarie.
바카라 게임 웹사이트The golden rule of negotiating and success: He who has the gold makes the rules,바카라 게임 웹사이트 Trump said in all capitalized letters on his Truth Social Network. He also said that 바카라 게임 웹사이트the businessmen who criticize tariffs are bad at business, but really bad at politics,바카라 게임 웹사이트 likewise in all caps.
Trump has recently focused more on China, the world바카라 게임 웹사이트s second-largest economy, which has also been keeping up its rhetoric. China on Monday warned other countries against making trade deals with the United States 바카라 게임 웹사이트at the expense of China바카라 게임 웹사이트s interest바카라 게임 웹사이트 as Japan, South Korea and others try to negotiate agreements.
바카라 게임 웹사이트If this happens, China will never accept it and will resolutely take countermeasures in a reciprocal manner,바카라 게임 웹사이트 China바카라 게임 웹사이트s Commerce Ministry said in a statement.
Also hanging over the market are worries about Trump바카라 게임 웹사이트s anger at Federal Reserve Chair Jerome Powell. Trump last week criticized Powell again for not cutting interest rates sooner to give the economy more juice.
The Fed has been resistant to lowering rates too quickly because it does not want to allow inflation to reaccelerate after slowing nearly all the way down to its 2% goal from more than 9% three years ago.
Trump about a slowdown for the U.S. economy that could be coming unless 바카라 게임 웹사이트Mr. Too Late, a major loser, lowers interest rates, NOW.바카라 게임 웹사이트
A move by Trump to fire Powell would likely send a bolt of fear through financial markets. While Wall Street loves lower rates, largely because they boost stock prices, the bigger worry would be that a less independent Fed would be less effective at keeping inflation under control. Such a move could further weaken, if not kill, the United States바카라 게임 웹사이트 reputation as the world바카라 게임 웹사이트s safest place to keep cash.
All the uncertainty striking pillars at the center of financial markets means some investors say they바카라 게임 웹사이트re having to rethink the fundamentals of how to invest.
바카라 게임 웹사이트We can no longer extrapolate from past trends or rely on long-term assumptions to anchor portfolios,바카라 게임 웹사이트 strategists at BlackRock Investment Institute said in a report. 바카라 게임 웹사이트The distinction between tactical and strategic asset allocation is blurred. Instead, we need to constantly reassess the long-term trajectory and be dynamic with asset allocation as we learn more about the future state of the global system.바카라 게임 웹사이트
That in turn could push investors outside the United States to keep more of their money in their home markets, according to the strategists led by Jean Boivin.
On Wall Street, Big Tech stocks helped lead indexes lower ahead of their latest earnings reports due later this week.
Tesla sank 5.7%. The electric vehicle바카라 게임 웹사이트s stock has more than halved from its record set in December on criticism that its stock price had gone too high and that its brand has become too entwined with Elon Musk, who바카라 게임 웹사이트s leading the U.S. government바카라 게임 웹사이트s efforts to cut spending.
Nvidia fell 4.5% for a third straight drop after disclosing that U.S. export limits on chips to China could hurt its first-quarter results by $5.5 billion.
They led another wipeout on Wall Street, and 92% of the stocks within the S&P 500 fell.
Among the few gainers were Discover Financial Services and Capital One Financial, which climbed after the U.S. government approved their proposed merger. Discover rose 3.6%, while Capital One added 1.5%.
All told, the S&P 500 fell 124.50 points to 5,158.20. The Dow Jones Industrial Average dropped 971.82 to 38,170.41, and the Nasdaq composite tumbled 415.55 to 15,870.90.
Gold also climbed to burnish its reputation as a safe-haven investment, unlike some others.
In the bond market, shorter-term Treasury yields fell as investors expect the Fed to cut its main overnight interest rate later this year to support the economy.
But longer-term yields rose with doubts about the United States바카라 게임 웹사이트 standing in the global economy. The yield on the 10-year Treasury climbed to 4.40%, up from 4.34% at the end of last week and from just about 4% earlier this month. That바카라 게임 웹사이트s a substantial move for the bond market.
The U.S. dollar바카라 게임 웹사이트s value, meanwhile, fell against the euro, Japanese yen, the Swiss franc and other currencies.
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AP Business Writer Elaine Kurtenbach contributed.