The US stock market took a big tumble on Tuesday—quickly reversing all the gains made in the previous week—on investor concern over the US-China trade relations. Apparently, the truce that was established over the weekend did not pique the confidence of investors.
As such, the Dow Jones Industrial Average fell nearly 800 points, dropping 3.1 percent below the 50-day moving average. In addition, the Nasdaq composite plunged 238 points or 3.8 percent, and the Standard and Poor’s 500 fell 90 points or 3.2 percent. Both the Nasdaq and the S&P plummeted below their respective 200-day moving average.
The biggest losers in the Dow’s drop were Caterpillar (CAT), JP Morgan Chase & Co (JPM), and Boeing Co (BA). In addition, Goldman Sachs fell 3.8 percent; dropping to $184.42, which is the lowest share price for the stock since election day.
In terms of the Nasdaq, Apple Inc (AAPL) was a surprising upset, dropping 4.4 percent after a report that the tech giant is looking into new strategies to boost iPhone sales. Indeed, iPhone sales have slowed dramatically, and it seems investors are losing confidence in the company’s momentum, particularly during the key holiday shopping period.
Essentially, each index wiped out all the gains made since hitting their most recent highs.
Looking more closely at the market, financial, industrial, transportation, and retail, sectors were the weakest stocks today.
On the other hand, a few stocks did perform well this week. For one, AutoZone Inc (AZO) released its first fiscal quarter earnings of the year. The auto parts and accessories chain reported $13.47 per share, which beat analysts’ estimates of $12.21; the reported $2.64 billion matched earnings forecasts. However, a domestic same-store sales bump of 2.7 percent beat expectations and the stock rose 6.9 percent.
In addition, Cannabis company Cronos Group Inc (CRON) took a nice 6 percent jump after confirming pending takeover interest from the world’s biggest cigarette manufacturer, Altria Group Inc (MO).
The market, right now, is volatile, though, so it is going to take a couple of days before we can see what the market’s next move should be: rebound or sell. However, exchanges and financial markets will all be closed on Wednesday for the funeral of former President George HW Bush.