Share

Nasdaq ends at record high, Dow falls on trade war worries

New York - The Nasdaq finished at another record high on Monday, but the Dow tumbled as revived worries of a trade war led to heavy selling in shares of several leading multinationals.

The tech-rich Nasdaq Composite Index rose 0.4% to 7 588.32, its second straight record.

The Dow Jones Industrial Average dropped 0.6% to 25 178.61, while the broad-based S&P 500 shed 0.1% to 2 783.02.

Wall Street stocks opened well on continued positive momentum from last Friday's strong jobs report, but the tone quickly shifted as investors took note of sharpening rhetoric on international trade.

European Trade Commissioner Cecilia Malmstroem said the trading bloc would "stand up to bullies" after President Donald Trump threatened to tax German cars if the European Union doesn't lower barriers to US products.

Trump provoked the Europeans still further in a tweet saying his Commerce Secretary Wilbur Ross would speak with the EU side "about eliminating the large tariffs and barriers they use against the USA."

Art Hogan, chief market strategist at Wunderlich Securities, said the back and forth reignited worries about a trade war that had receded somewhat after Trump indicated more flexibility on imported steel and aluminium.

"Now, when we start to hear about possible retaliation, it becomes a concern again," Hogan said.

Boeing and Caterpillar both dropped more than two percent, while United Technologies shed 1.9% and Honeywell International 1.3%. All are major exporters that could be hurt if escalating threats become reality.

Among Nasdaq companies, both Apple and Amazon gained around 1%, while Tesla Motors jumped 5.6%.

But Netflix dropped 3.1% after Citron Research said the streaming company was overvalued and should be "shorted," meaning investors should bet it will fall.

Broadcom shares jumped 3.6% after a Wall Street Journal report that Intel is considering bidding for the chip company, which has undertaken a hostile campaign to buy Qualcomm. Intel fell 1.3%.

Goldman Sachs gained 1.0% after announcing that co-president Harvey Schwartz would retire, leaving David Solomon the sole president and next in line to become the investment bank's next chief executive.

* Sign up to Fin24's top news in your inbox: SUBSCRIBE TO FIN24 NEWSLETTER
We live in a world where facts and fiction get blurred
Who we choose to trust can have a profound impact on our lives. Join thousands of devoted South Africans who look to News24 to bring them news they can trust every day. As we celebrate 25 years, become a News24 subscriber as we strive to keep you informed, inspired and empowered.
Join News24 today
heading
description
username
Show Comments ()
Rand - Dollar
18.94
-0.0%
Rand - Pound
23.91
-0.0%
Rand - Euro
20.41
+0.1%
Rand - Aus dollar
12.33
+0.1%
Rand - Yen
0.13
-0.0%
Platinum
908.05
+1.2%
Palladium
1,014.94
0.0%
Gold
2,232.75
-0.0%
Silver
24.95
-0.1%
Brent Crude
87.00
+1.8%
Top 40
68,346
0.0%
All Share
74,536
0.0%
Resource 10
57,251
0.0%
Industrial 25
103,936
0.0%
Financial 15
16,502
0.0%
All JSE data delayed by at least 15 minutes Iress logo
Company Snapshot
Editorial feedback and complaints

Contact the public editor with feedback for our journalists, complaints, queries or suggestions about articles on News24.

LEARN MORE
Government tenders

Find public sector tender opportunities in South Africa here.

Government tenders
This portal provides access to information on all tenders made by all public sector organisations in all spheres of government.
Browse tenders