Dow dives as much as 750

Stocks rally on Amazon's rebound, dollar gains
Dow dives as much as 750
Author

04 April, 2018

A Twitter post from the "People's Daily", an English-language news organization controlled by the Chinese government, said Sunday that "China imposes tariffs on 128 items of imports from the US including pork and fruit products starting Monday as a countermeasure in response to a previous USA move to slap tariffs on steel and aluminum imports: Ministry of Finance". It's too soon to call it the beginning of a trade war, but for now, investors aren't sticking around to find out.

The Dow was down 610 points, or 2.5 percent, to 23,492 as of 1:42 p.m. The Dow Jones Industrial Average rose 1.2% while the S&P 500 was up 1% and the Nasdaq Composite Index was up 0.9%. The S&P 500 .SPX fell 58.99 points, or 2.23 percent, to 2,581.88 and the Nasdaq Composite .IXIC dropped 193.33 points, or 2.74 percent, to 6,870.12.

Tesla shares gained 4.5 percent after the electric automaker said it need not raise more capital this year and announced robust production numbers for its cheaper Model 3 sedans.

Amazon and Tesla, the top drags yesterday, rose, with the Dow and the S&P opening above their 200-day moving averages.

Amazon fell more than 5%, or 75.35, its biggest point drop ever. Seoul's Kospi retreated 0.6 percent to 2,429.18. The company has lost $83 billion in market value since mid-march.

Amazon sank following weekend broadsides from President Donald Trump on Twitter, while Facebook tumbled as a widening privacy scandal continued to weigh on the company's stock.

Trump on Monday again criticized the e-giant's tax treatment as well as its its use of the United States Postal Service, tweeting: "Only fools, or worse, are saying that our money losing Post Office makes money with Amazon". Technology companies including Oracle, Apple and Google parent Alphabet moved higher even though they weren't doing as well as the rest of the market. Snap fell 8 percent over planned layoffs. Trading volumes were light, with some global markets still closed.

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That tweet was enough to send Amazon shares down 7 percent, or $50 billion, in early morning trading last week.

Stocks took as nosedive as soon as trading began Monday.

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.

Tesla (TSLA) came under regulatory scrutiny after a second crash this year involving the electric vehicle company's Autopilot driver-assistance system, the latest of which involved a death. Hong Kong's Hang Seng bucked the trend, ending up 0.2 per cent at 30,137.49.

U.S. Treasury yields fell to two-month lows as investors fled sliding stocks for safety ahead of Friday's closely watched jobs report.

The dollar edged down to 105.87 yen from Monday's 105.89 yen as currency traders shifted money into the Japanese currency, seen as a haven in times of market turmoil. After peaking at nearly $1,600 a share last month, Amazon has slumped with the market recently. The euro dipped to $1.2288 from $1.2306. Natural gas slid 5 cents to $2.68 per 1,000 cubic feet.


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