Contagion continues…
The tech stock rout, which accelerated during yesterday’s Congressional hearing on social network bias, accelerated on Thursday, this time led by a selloff in chipmakers dragging the Nasdaq Composite to a two-week low.
The biggest loser was KLA-Tencor, which sank 7.8%, pulling the semiconductor space lower by 1.7%. Casino shares were also under pressure with Las Vegas Sands down 2.8 percent. The threat of fresh tariffs by the Trump administration on Chinese goods loomed over equity markets.
After some early gains, the S&P 500 also slumped further away from its recent all time highs and further below 2,900 as investors were spooked by the imminent announcement of some $200BN in in new Chinese tariffs and ahead of Friday’s jobs report.
After initially falling, the dollar rebounded as emerging market stocks stumbled into bear market territory after enjoying an early morning respite from the selling. Meanwhile, Treasuries edged higher after a disappointing ADP report.
“There are many risks out there,” Chris Rupkey, chief financial economist at MUFG Union Bank in New York, wrote in an email to clients.
“Emerging markets causing market chaos (forget US stocks are at all time highs and could care less), rising trade tensions threatening long-established world trade patterns and disrupting company supply-chains.”
EM Equities have slumped into a bear market…
Predictably, attention remains on emerging markets which hold the key to sentiment, with recent losses fueling fears that turmoil could spill into developed markets. While focus remains on efforts from Argentina to Indonesia to sustain confidence, the potential for President Donald Trump to announce another round of tariff hikes on Chinese imports as soon as Thursday also looms large.
Mega-Tech stocks are under pressure once again as FANG slumps to 3-Week lows…
With all members slumping..
Treasuries are bid and the dollar is rising.
via RSS https://ift.tt/2M4Gy1g Tyler Durden