Among IBD’s 197 industry groups, losers led winners by a more than 7-1 ratio.
The Nasdaq careened 2.7% lower, while the S&P 500 sank 2.2%. The Dow Jones industrial average cut back 1.8%.
Volume in the stock market today fell on both major exchanges vs. the same time on Thursday. The market was closed on Good Friday.
Bulls found much to dislike on the technical side. The Nasdaq cut below its previous recent low. Holding above the technical lows is important. A market that keeps making fresh lows dampens the prospects for a new rally. The S&P 500 also violated its previous recent low.
Tariffs Shock Stock Market
The stock market continues to struggle with the tariff issue.
China announced late Sunday that tariffs on 128 U.S. products would take effect Monday, according to Bloomberg News. Items among the 128 include fruits, ginseng, nuts, wine, pork and some steel products. The value matches that of the U.S. tariffs on steel and aluminum.
Beijing has more ammunition if the trade dispute intensified. China has not yet included a large range of major U.S. agriculture products, such as soybeans.
A week ago, China called for talks with the U.S., but the Trump administration did not respond.
Trump Bashes Amazon
Another concern for the stock market is President Trump’s attacks on Amazon.com (AMZN). Trump recently tweeted that Amazon does not pay enough in taxes, is a burden to the U.S. Postal Service and is putting “thousands of retailers out of business!”
If that sounds like a Latin American populist, therein lies the problem.
For populists, attitude means more than facts. As the New York Times noted, Securities and Exchange Commission documents say Amazon paid $412 million in income taxes in 2016 and $957 million in 2017.
Amazon also collects and pays sales tax in every state that has a sales tax, the Times reported.
Two manufacturing indexes reported March data. The Institute for Supply Management’s manufacturing index rolled in at 59.3, missing the consensus view for 60. Meanwhile, the reading for the Purchasing Managers Index for manufacturing missed views, 55.6 vs. views for 55.7.
Construction spending for February also fell short of estimates. The reading rose 0.1% vs. the consensus estimate of 0.5%.
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