Investing.com – Stocks plunged Monday and bonds jumped thanks to miserable combination of trade worries, the worsening civil strife in Honk Kong and fears about global growth generally.
The was off 1.23%. The fell 1.49%, and the had given up 1.20%. The index, reflecting Big Tech, dropped 1.1%.
The was off as many as 462 points before late-day bargain hunting kicked in.
The major averages have fallen about 5% from the peaks in late July. Long-term bond yields tumbled, with the spread between the falling to as little as six basis points. The spread was the lowest since 2007. The 10-year yield fell to about 1.64%, the lowest level since October 2016.
The narrowing spread is a clear signal increasing worries the U.S.-China trade fight will go on and sap the global economy in the process. Goldman Sachs (NYSE:) analysts said Sunday they don't see a resolution before the 2020 election.
China was struggling with continuing protests in Hong Kong and speculation mounted that the Beijing government would bring in armed forces to control the situation.
Johnson & Johnson (NYSE:) was the only stock showing a daily gain, up just 0.05%. Stocks of companies with global presences were weighing heavily on the market. Goldman Sachs (NYSE:) was down 2.6%. Caterpillar (NYSE:) was down 2.2% and Pfizer (NYSE:) fell 3.7% after hitting a 52-week low.
Financial, consumer discretionary, materials and technology stocks were the weakest sectors. Real estate and utilities suffered the least losses.
Big tech stocks fell, including Amazon.com Inc (NASDAQ:), Microsoft (NASDAQ:)and Apple (NASDAQ:), though Apple was off just 0.25%. Advanced Micro Devices (NASDAQ:) fell 5%, despite two Wall Street houses boosting their target prices on the stock. Some of the decline may be due to a huge run-up this year.
Uber Technologies (NYSE:) and Lyft (NASDAQ:) also were sharply lower on concerns about when — or if — the ride-sharing companies will ever see profits.
The losses for the major averages were their seventh in the last 10 trading days.
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