Led by losses in Apple ( AAPL ) and Goldman Sachs ( GS ), the Dow hemorrhaged more than 600 points on Monday as Wall Street continued to be unnerved by fears of slowing global growth amid escalating trade tensions between the US and China, the persistent sell-off in oil, and worrisome headlines from Europe.
The October meltdown continued to reverberate through Wall Street on Monday with tech stocks again taking the full force of investors’ aversion to risk. A profit warning from Apple supplier Lumentum ( LITE ) raised fears of soft iPhone sales in Q4, sending shares of the tech giant to its lowest level since May and crushing the remaining FAANG stocks. Coupled with a nosedive in Goldman Sachs after the Malaysian government said it will seek a “full refund” for 1MDB deals, the blue chip index suffered its biggest one-day drop since the feeding frenzy of Oct 10.
Stocks were steady overnight and coiled for a rebound after Friday’s rout before reports that the White House was expanding its trade war against China to include IP theft triggered another selling spree at the open. The defensive tone was amplified by a stronger dollar and persistent pressure on the energy complex when President Donald Trump’s tweet about lower prices and abundant supply drove West Texas intermediate crude futures into the red for an eleventh straight day.
In corporate news, shares of General Electric ( GE ) were torpedoed despite assurances by new CEO Larry Culp that the company would try to raise cash through asset sales. The stock limped into the close lower at its lowest level since 2009.
There was no economic data on Monday in observation of the Veteran’s Day holiday. The bond market was also closed.