Equities in 'Tailspin' as Stocks Hit the 'Trump Slump'

Not since the Great Depression have US stocks seen such a bad April slide, Bloomberg reports
By Jenn Gidman,  Newser Staff
Posted Apr 3, 2018 6:03 AM CDT
Updated Apr 3, 2018 6:41 AM CDT
A trader works on the floor of the New York Stock Exchange on Monday. Stocks closed sharply lower on Wall Street as tech companies took heavy losses and investors worried about escalating trade tensions...   (AP Photo/Richard Drew)

(Newser) – US stocks haven't seen a second-quarter start like this in 90 years—90 years ago being the kickoff to the Great Depression. Bloomberg looked at the numbers and reports on the April slide: 2.2% for the S&P 500, a drop that hasn't been surpassed since 1929's 2.5% April fall. On a simple quarter-by-quarter analysis, things don't look so great, either, with equities suffering more than any other quarter's first day since October 2011. Volatility went up, and the S&P 500 fell below its 200-day moving average. What helped send equities "into a tailspin," per Bloomberg: China pushing back on tariffs, as well as a sell-off in consumer discretionary and tech stocks apparently driven by President Trump's railing against Amazon.

MarketWatch notes Amazon stocks could still be in trouble Tuesday in the wake of a Vanity Fair report that Trump plans to keep up his online assault on the company. The New York Times assessment: The "Trump Bump is becoming the Trump Slump," and the record highs recently achieved are "done," though it adds the market is still up 20% since Trump won the election. Meanwhile, a QMA portfolio manager tells CNBC, which reports US stocks have fallen into "correction territory," that volatility fluctuations are "normal" and that "at the end of the day it's got to be earnings that drive the market this year." (Trump is said to be "obsessed" with Amazon.)

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