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Wall Street sinks as tariff war heats up

Credit: Reuters Studio
Published on May 13, 2019 - Duration: 01:15s

Wall Street sinks as tariff war heats up

Wall Street shares sank on Monday after China defied Washington by announcing retaliatory tariffs, sending investors fleeing equities for less risky assets.

Fred Katayama reports.

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Wall Street sinks as tariff war heats up

An intensifying trade war slammed U.S. stocks Monday.

Investors headed for the exits and bought Treasuries after Beijing struck back with higher tariffs on U.S. goods.

The Dow and S&P 500 shed 2.4 percent.

The Nasdaq suffered its biggest daily loss this year, down 3.4 percent.

First American Trust chief investment officer, Jerry Braakman: SOUNDBITE: FIRST AMERICAN TRUST CHIEF INVESTMENT OFFICER, JERRY BRAAKMAN (ENGLISH) SAYING: "When we see these things hit the headlines, we definitely see a lot of volatility.

And then, all the bears come out of the woodwork and start talking about all the things they were talking about in the fourth quarter.

So we definitely see some sentiment shifting away from the market and that's why we see a pretty negative reaction here last week and also today." Hit hardest: multinationals with big exposure to China.

That included chips like Intel and Qualcomm and industrials Boeing and Caterpillar.

Tech stocks also got hammered, especially the FAANG stocks - Facebook, Amazon, Apple, Netflix and Google parent Alphabet.

Separately, Apple received a legal setback .The Supreme Court says an antitrust lawsuit accusing the iPhone maker of monopolizing the market for apps can proceed .

The market turmoil exacerbated Uber's woes.

The ride-hailing company's shares extended their losses from Friday's disappointing debut on the public markets.

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