4:08 p.m. That was not a good way to end the day. The S&P 500 slumped 2.5% to 2643.69 today, while the Dow Jones Industrial Average tumbled 724.42 points, or 2.9%, to 23,957.89. The Nasdaq Composite dropped 2.5% to 7166.68. All three suffered their biggest drops since Feb. 8.
Tariffs against China were blamed for today’s losses, but as I noted earlier today, the more the market drops, the more investors will start worrying about an economic slowdown of some sort. And you can start finding signs of slowing economic momentum, if you’re so inclined. The IHS Markit’s composite flash PMI for the eurozone fell to 55.3, below forecasts for 56.7, and PMI’s were weaker globally. “As is often the case, the issue we face in assessing the PMIs is not so much their level as their momentum,” writes JPMorgan’s David Hensley. “The PMIs need to stabilize in April or else we will become more concerned.”
If we’re not already.
3:51 p.m. And worse. The S&P 500 has slumped 2.5% to 2,645.42, while the Dow Jones Industrial Average has tumbled 703.78 points, or 2.9%, to 23,978.53. The Nasdaq Composite has dropped 2.3% to 7180.29. See you at the close.
3:16 p.m. It gets worse. The S&P 500 has dropped 1.9% to 2661.04, while the Dow Jones Industrial Average has tumbled 2.2% to 24,147.77. The Nasdaq Composite has fallen 1.7% to 7214.62. This is getting ugly fast.
2:48 p.m. For a moment there, it looked like the Dow Jones Industrial Average would stage a rally. Nope. The blue-chip benchmark has dropped 411.47 points, or 1.7%, to 24,270.84, while the S&P 500 has fallen 1.4% to 2673.73, and the Nasdaq Composite has declined 1.3% to 7249.93.
That bounce you see there came after the tariffs were formally announced around noon. At the time, the market was trying to convince itself that the tariffs weren’t really that bad. NatAlliance Securities’ Andrew Brenner described it like this: “Originally pundits thought the 50 billion dollars of tariffs was a 10% tax on the 500 billion of Chinese imports, which would have been huge and disruptive…after it was explained, it turns out it was on 50 billion of goods, or only 10% of what China imports.” President Donald Trump put the number at $60 billion. The plan also includes limits on investments by Chinese firms in U.S. companies, though the Treasury has 60 days to come up with the details.
It was a nice try, but tariffs are still tariffs.
Dow Drops 400 Points as Small-Caps Show It’s All About Tariffs
10:53 a.m. That accelerated quickly. The S&P 500 has dropped 1.5% to 2672.56, while the Dow Jones Industrial Average has slumped 397.51 points, or 1.6%, to 24,284.80. The Nasdaq Composite has fallen 1.6% to 7231.05.
And if you doubted for a moment that this was all about tariffs, consider this: As the major indexes hit new lows, the Russell 2000 has been rallying off its own. It’s down just 0.5% at 1571.44 as investors bet that small companies will be less exposed to retaliatory sanctions.
Dow Tumbles 300 Points as Tariffs More Frightening Than Fed
10:28 a.m. The Dow Jones Industrial Averagetraded down more than 300 points almost immediately this morning on tariff concerns, but that looks to be the low of the day for now. It’s dropped 256.19 point, or 1%, to 24,426.12, while the S&P 500 has fallen 0.9% to 2688.94, and the Nasdaq Composite has declined 0.8% to 2688.94.
We’ve been focusing on the technicals a lot lately because that’s what seems to be dominating trading these days. And right now, the technicals don’t look so good. “The large bearish pattern remains in place with a downside target near 2,600,” writes Intinet’s Frank Cappelleri. “While that won’t get hit today, if demand doesn’t re-appear soon, the index’s series of higher lows will be at risk.”
And that would mean everything is at risk.
Dow Set for 170 Point Drop as Tariffs Front and Center
6:57 a.m. Here we go again. Stocks are sliding today on reports the Trump administration is preparing to announce $50 billion of tariffs on China. S&P 500 futures have dropped 0.7%, while Dow Jones Industrial Average futures have slumped 177 points, or 0.7%. Nasdaq Composite futures have tumbled 1.2%. ” It looks like tariffs on steel and aluminum were President Trump’s starting hand,” writes Yardeni Research’s Ed Yardeni. “The impact tariffs will have on the market is tough to gauge because S&P 500 companies’ disclosures about where their goods are sold geographically are mediocre at best.”
And down we go.
