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Stocks - Wall Street Plunges as Trumps Tells US Companies to Leave China

Stock MarketsAug 23, 2019 05:31PM ET
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Investing.com – Stocks tumbled Friday as the U.S.-China trade dispute intensified and President Donald Trump announced he was ordering U.S. companies with China facilities to move them somewhere else.

The S&P 500 fell 2.59%. The Dow was off nearly 2.37%, and the Nasdaq Composite was down 3.0%. The Nasdaq 100, heavily influenced by some of the biggest names in technology, dropped about 3.15%.

The losses were the third worst point loss for the S&P 500 this year and the fourth-worst daily point losses for the Dow and the Nasdaq.

The three big S&P 500 losses have occurred in August.

The Dow, meanwhile, had fallen as many as 745 points during the session before last-minute bargain hunting trimmed the day's losses.

Apple (NASDAQ:AAPL), whose growth is tied to growth in its China business, was off more than 4.6%. Most big-tech stocks were off by similar amounts. Advanced Micro Devices (NASDAQ:AMD) fell about 7.4%. Nvidia (NASDAQ:NVDA), whose chips speed up graphics applications, fell 5.3%.

The Trump order, announced on Twitter and whose enforceability is questionable, came after China announced it would raise tariffs on a variety of U.S. products, including cars and farm products. The president said U.S. manufacturers should move their Chinese operations elsewhere or bring jobs back to the United States.

After the close, President Trump retaliated against China's tariff move, saying he's raising tariffs to 30% on some Chinese imports after Beijing said it would place added tariffs on U.S. goods. It wasn't clear how the move will affect markets on Monday.

The order also came after Federal Reserve Chairman Jerome Powell told a Jackson Hole, Wyo., conference that the Fed stood ready to provide stimulus to the economy if needed. Trump didn't like the speech because it did not signal an aggressive interest-rate cut at the Fed's next meeting in September.

In a tweet, Trump asked, "My only question is, who is our biggest enemy, Jay Powell or Chairman Xi?” Chairman Xi being Xi Jinping, the Chinese president.

The 10-Year Treasury yield fell to 1.52%, down from 1.61% on Thursday. The spread between the 10-year note yield and the yield on the 2-year Treasury note widened to 0.13 basis points.

Twenty-nine of the 30 Dow stocks were lower, with the Boeing Co (NYSE:BA), the sole gainer, up 1.1%. Apple (NASDAQ:AAPL) was the biggest loser.

Twenty-nine of the 30 Dow stocks were lower, with the Boeing Co (NYSE:BA), the sole gainer, up 1.1%. Apple (NASDAQ:AAPL) was the biggest loser.

Only Intuit (NASDAQ:INTU) and NetEase Inc (NASDAQ:NTES) finished in the black among Nasdaq-100 stocks, with Hasbro (NASDAQ:HAS), AMD and Alexion Pharmaceuticals Inc (NASDAQ:ALXN) the biggest losers.

Just nine S&P 500 stocks were higher, led by Salesforce.com Inc (NYSE:CRM), Newmont Goldcorp (NYSE:NEM), Intuit (NASDAQ:INTU) and Boeing (NYSE:BA). Foot Locker (NYSE:FL), which reported very disappointing earnings Friday, L Brands (NYSE:LB) and Hasbro (NASDAQ:HAS) were the weakest S&P 500 performers.

While the major averages are sporting yearly gains of more than 10%, the market continues to be buffeted from volatility in large because of the increasingly tense U.S.-China trade battle and President Trump's angry tweets.

The Dow has seen six daily losses of 280 points or more in August alone.

Friday's selloff wiped out weekly gains for much of the U.S. stock market. The S&P 500 was off 1.4%, with the Dow dropping 1% and the Nasdaq 1.8%.

With a week to go in August, the S&P 500 is down 4.47%, with the Dow down 4.6% and the Nasdaq off 5.2%. August is likely to be the second-worst month of the year for the indexes.

Only Intuit (NASDAQ:INTU) and NetEase Inc (NASDAQ:NTES) finished in the black among Nasdaq-100 stocks, with Hasbro (NASDAQ:HAS), AMD and Alexion Pharmaceuticals Inc (NASDAQ:ALXN) the biggest losers.

Just nine S&P 500 stocks were higher, led by Salesforce.com Inc (NYSE:CRM), Newmont Goldcorp (NYSE:NEM), Intuit (NASDAQ:INTU) and Boeing (NYSE:BA). Foot Locker (NYSE:FL), which reported very disappointing earnings Friday, L Brands (NYSE:LB) and Hasbro (NASDAQ:HAS) were the weakest S&P 500 performers.

While the major averages are sporting yearly gains of more than 10%, the market continues to be buffeted from volatility in large because of the increasingly tense U.S.-China trade battle and President Trump's angry tweets.

The Dow has seen six daily losses of 280 points or more in August alone.

Friday's selloff wiped out weekly gains for much of the U.S. stock market. The S&P 500 was off 1.4%, with the Dow dropping 1% and the Nasdaq 1.8%.

With a week to go in August, the S&P 500 is down 4.47%, with the Dow down 4.6% and the Nasdaq off 5.2%. August is likely to be the second-worst month of the year for the indexes.

Stocks - Wall Street Plunges as Trumps Tells US Companies to Leave China
 

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Hank Williams
Hank Williams Aug 24, 2019 11:20AM ET
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Create an exchange transaction tax and drop other taxes. Use it to save infrastructure industries, space exploration and deficit.
Glen Rautio
GlentheTaper Aug 24, 2019 6:53AM ET
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Ahhhhhh the sweet smell of free will. Something China will never understand or allow.
Peter Dee
Peter Dee Aug 24, 2019 6:17AM ET
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Friday's market action 25% busier than the week before.TRIN at 1.49..... What do you see for Monday.?
Tumelo Mash
Tumelo Mash Aug 24, 2019 6:17AM ET
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The Asian session and European is gonna go wild on Monday... Everybody looking for safe haven
Ciby Jose
Ciby Jose Aug 24, 2019 5:49AM ET
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It is high time USA diversified its manufacturing base, which is now CONCENTRATED IN CHINA..CONCENTRATION RISK. China is playing it with USA.. The remedy is to diversify!!..What happens if there is WAR and China stops all supplies to the USA... USA will starve
Juho Peltola
Juho Peltola Aug 24, 2019 4:26AM ET
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Growth should be tied to sells growth, not just one country.
Tumelo Mash
Tumelo Mash Aug 24, 2019 2:04AM ET
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When the markets closed last night he imposed an additional 25% Tariffs from first of October... He has really lost his mind... The elections are getting to him... Time is running out and he is starting to question if he played this chess game wrong.. China is winning he losses every time he Tweets he is gonna be blamed for the recession of 2019/2020.
David Wong
David Wong Aug 24, 2019 2:04AM ET
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You are correct ... if Trump read the Art of War instead of writing his Art of the Deal, he could have avoided many mistake. He is falling prey to President Xi's tactics. Trump is feeling burnt out. He goes after the Fed, act recklessly, putting our US companies into a worst spot, the farmers turned against him, etc.... Trump is an easy opponent for President Xi. President Xi doesn't need to do much, just sit back, relax and watch Trump shoot himself in the foot.
Jan Buyle
Jan Buyle Aug 24, 2019 2:04AM ET
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I think he is very desperate.. he understands that if he won't be elected President again he will end up in jail soon... Let's hope for that to happen.
YC Teng
YC Teng Aug 24, 2019 1:47AM ET
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Whose the tryant and where's the democracy?This has become a joke and America continues to close up to rest of the world!God blessed America...
Jun Man
Jun Man Aug 24, 2019 1:16AM ET
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The US is now a command economy? Trump can tell what companies can do?
Jan Buyle
Jan Buyle Aug 24, 2019 1:16AM ET
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Seems like he is inspired by the Chinese central lead economy. Oooo would he like that!
Alex Gaitan
Alex Gaitan Aug 24, 2019 12:29AM ET
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Trump needs to be booted out of office, worst president ever and with a very weak economy, weak dollar, increased national debt he has done absolutely nothing for this economy...
nguyen dang
nguyen dang Aug 24, 2019 12:24AM ET
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the rich gets richer, the poor ones like us just lost our 401k
Chris Sundo
Chris Sundo Aug 24, 2019 12:24AM ET
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Not lost nothing till u sell. Markets have proven to rise 3x more often than falling. 2016 Feb 11 is now a blib on the horizon. But yes, a retest of 2019 June is likely
nguyen dang
nguyen dang Aug 24, 2019 12:22AM ET
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while Trump is pulling the strings on the market i wonder who's doing the tradings.
Chris Sundo
Chris Sundo Aug 24, 2019 12:22AM ET
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Yeah, imho he's colluding with big wall street gangsters to influence the market just at the pivot points
Chris Sundo
Chris Sundo Aug 24, 2019 12:16AM ET
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Bizarre how the Commies bring out the worst in him. He's licking out of Putin's hand and totally letting his emotions out on the world stage with China. --- Does Narcissistic Personality Disorder make him see himself as a lovable baby that can cry and commit Trump_ertantrums without image concerns? --- Can he not see his actions through before he pushes his twitter button? -- Can he not see that he is speaking on behalf of major US interests? -- Does he portray leadership qualities or hope to bring leaders to higher levels with his behaviour? -- He is displaying selfcontrol issues among other troubling behaviours, Not the kind you would expect from a leader. Who vetted him?
David Wong
David Wong Aug 24, 2019 12:12AM ET
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I told you guys .... from here on out, China is going to win win win big.
George Pichurov
George Pichurov Aug 24, 2019 12:04AM ET
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Trump is ordering the US companies... is he ruling a communist state?
Jack Zhang
Jack_A Aug 24, 2019 12:04AM ET
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he may have enough shares from the big companies
Wai Oh
Wai Oh Aug 23, 2019 11:46PM ET
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Not only Trade war.. He really looks wanna World War 3 with China now..lol
Andrew carson
Andrew carson Aug 23, 2019 11:03PM ET
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Powell sunk the market.
MAX KIMBEE
MAX KIMBEE Aug 23, 2019 11:03PM ET
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Seriously?!! The market took Powell's comments in stride with a shrug - Trump single handily tanked the market - again. Even Fox News - sounds like your source for unbiased news - blamed Trump's unhinged tweeted rants.
Alex Gaitan
Alex Gaitan Aug 23, 2019 11:03PM ET
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Trump destroyed the market
Jan Buyle
Jan Buyle Aug 23, 2019 11:03PM ET
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Powel should get a statue for standing up against a brutal leader and just keep on doing his job the way he should be. There is a reason why the Fed's independency was created. It was created to not letting the Fed become the playing ball of dictatorial leaders like Trump. Powel is a hero.
Matthew NT
MatthewBT Aug 23, 2019 10:04PM ET
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Trump is laughing his way to the bank manipulating the market with his tweets. All these alternating Trump manufactured "crisis" & "good news" are making Trump obscene money. American taken for a ride real good by Trump.
Alan West
Alan West Aug 23, 2019 9:40PM ET
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The last time politicians implemented protectionist policies there was the Great Depression, but the schlump doesnt know that.
Val Zuk
Val Zuk Aug 23, 2019 9:14PM ET
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stock market will correct soon anyway,trump is genius to make use of the soon correction and show he demands long term trade fairness.stupid to be in stock market before correction anyway.i'm waiting for it to drop 2000 more!
Tumelo Mash
Tumelo Mash Aug 23, 2019 9:14PM ET
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Your analysis is below 10% chance of it happening your so called friend Trump is losing his cool... He is making himself look stupid in front of everyone
richy rich
richy rich Aug 23, 2019 8:28PM ET
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Well he ruined my day, AGAIN. Companies can only release relevent news pre or post market. Trump releases news in the middle of the trading day. He's gotta be profiting from his tweets.
Tumelo Mash
Tumelo Mash Aug 23, 2019 8:28PM ET
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Sorry boss next time check the president tweets every 20 mins during the trading session you will be more cautious from such events i learnt that the hard way
Maximus Maximus
Maximus Maximus Aug 23, 2019 8:12PM ET
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Stay calm. Markets will recover. And Trump will never get re-elected.
Jo Riley
Jo Riley Aug 23, 2019 8:12PM ET
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Keep dreaming Max - guess you would rather keep the China addiction going and trust communist China's elite to rule the world
Mr Rogers
Mr Rogers Aug 23, 2019 7:40PM ET
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The election phrase Make America Great Again..Strenghting America is going be a challenge! Mr Trump has the strenght to make change. Supporting this change will take courage and something else GUTS to stand by his decision. Im ready are you?
Maximus Maximus
Maximus Maximus Aug 23, 2019 7:40PM ET
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Absolutely not.
rob finch
rob finch Aug 23, 2019 6:45PM ET
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what happened to the economies in the rest of the world? is that President Donald J Trump as well? Reelect the president in 2020. the one that the liars hate.
Vishal Bhosekar
Vishal Bhosekar Aug 23, 2019 6:37PM ET
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ohh no, he shorted global equities again, are country really going to be great again or it's going into great recession,hard to believe..
Dave crys
Dave crys Aug 23, 2019 6:32PM ET
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This recession that trump is engineering will be worse then 2008. The cans down the road are now an impassable wall.
Jo Riley
Jo Riley Aug 23, 2019 6:32PM ET
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Countries' recessions will be caused by poor decisions of their own political leaders, not Trump's engineering skills.
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