- The S&P 500 (S&P)lost 2.4% to end around 2,812.
- Dow Jones Industrial Average (DJIA), dropped 2.4%, or 617 points, to around 25,326.
- The Nasdaq Composite was the worst hit, losing 3.4% to end around 7,647.
China launched its own broadside of tariffs on $60 billion of U.S. imports in retaliation to the Trump administration raising tariffs on $200 billion of Chinese imports. President Donald Trump also said the U.S. was ready to impose another round of tariffs on $300 billion of Chinese goods; The news sent stocks off a cliff, ending sharply in the red on Monday. The S&P 500 (S&P)lost 2.4% to end around 2,812 while the Dow Jones Industrial Average (DJIA), dropped 2.4%, or 617 points, to around 25,326. The Nasdaq Composite was the worst hit, losing 3.4% to end around 7,647 making for its worst day this year so far while both the S&P and DJIA suffered their biggest losses since January 3rd. There was some late reprieve when Trump tweeted that he would later meet with China’s leader Xi Jinping in June at the Group of 20 summit in Japan.
“Apart from examining the broadening of the tariff net on Chinese imports to the US, attention is also focusing on whether US President Trump will soon announce tariffs on car imports which would badly hit the industrial sectors in Europe and Japan. European shares dropped after the EU said it was finalising a list of US goods to target in the event that Trump imposes levels on car imports,”
analysts at ANZ Bank explained
Technically, a break of and close below the 200 4hr SMA is required, down at 25280, to open the 24800 gap area (127.29% Fibo) ahead of the 24500s and then 50% of the upside run made at the end of Dec at 24150. 24200 is the next key downside level. On the flipside, bulls will target a break of 25500 ahead of 29. March lows at 25771, meeting the 61.8% Fibo.