The deepening rout in once high-flying technology shares sent U.S. stocks tumbling to start the second quarter, as fresh presidential criticism of Amazon.com and retaliatory tariffs from China rattled markets. Gold rose on haven demand. The S&P 500 Index closed at the lowest level since early February and finished below its average price for the past 200 days for the first time since June 2016. The index is now lower by more than 10 percent from its January record. The CBOE
Volatility Index jumped to 23. Selling was heaviest in technology stocks. The Nasdaq 100 Index lost 2.9 percent as investors continued to offload some of the bull market’s biggest gainers. Amazon, up 50 percent in the past year, sank after Donald Trump renewed his attack on the online retailer. Netflix slid 5 percent, while chipmakers in the S&P 500 plunged 4.3 percent thanks to Intel’s worst day in two years. Bonds erased declines and gold spiked higher as the equity selling picked up steam.
Trump and renewed trade concerns roiled U.S. financial markets to start the second quarter after the worst three months for global stocks in more than two years. The risk-off tone comes just two weeks before earnings season starts, with investors still anticipating a strong showing even as signs have emerged that the synchronized global growth story is faltering just as the Federal Reserve steps up its tightening.
Easter Monday is a public holiday in many major markets including the U.K., Australia, Canada, and most of Europe.
Ten-year Treasury yields fell below 2.75 percent after data showed U.S. consumer spending lagged behind income growth for a second month in February. Volumes were subdued ahead of a long weekend.
The dollar posted its fifth straight quarterly decline, and oils its third consecutive quarterly gain.
The arrival of the holiday will be a relief for many investors following a roller coaster start to the year in which stellar global equity gains gave way to a volatility blowup in February and a technology-led rout in recent days.
Elsewhere, West Texas oil rallied toward $65 a barrel.
Bitcoin fell past $7,500
