Stocks fell deep into early losses Monday after a tariff increase from China delivered the latest shift in the U.S.-China trade war.
The Nasdaq was 2.7% lower in early trade, with the Dow Jones industrial average off 1.9% and the S&P 500 sliding 2.1% lower.
China-based stocks and China trade-sensitive issues came under clear pressure in early trade. Apple (NASDAQ:AAPL) and Caterpillar led the declines on the Dow. Baozun, Weibo and YY notched some of the deepest declines. Alibaba Group, Baidu and JD.com each dropped around 4%.
China-based IPO Niu Technologies was an exception, up sharply after its first-quarter report. Tencent Music Entertainment Group reports after today’s market close.
Nearly two-thirds of the 30 Dow Jones Industrial Average stocks fell to losses deeper than 1% at the start of trade Monday. Apple led the declines, down more than 4%. Apple represents around 5% of the Dow’s weighting — roughly double the influence of Walmart, and a bit more than half that of Boeing. Boeing fell 2.7%. Walmart gained 1.1% in Monday’s early trade.
Apple is particularly sensitive to effects of the trade war, with its already pricey iPhones sourced almost entirely from China.
Source: Investors Business Daily