Dow Dives by Nearly 500 Points Over Trade Fears

  • 00:20 08 May 2019

Dow Dives by Nearly 500 Points Over Trade Fears

The Dow Jones Industrial Average fell by 473.39 points on Tuesday, marking one of the lowest levels since January 2019, ONA reports citing Sputniknews.

The S&P 500 fell by some 2 percent, a decline that placed both Dow Jones and the S&P "on pace for their worst day since January 3." As for Nasdaq, it fell by 2.3 percent.

According to NBC News, tech stocks "took the heaviest blows" as a result of an ongoing trade war between the US and China. The latest development has reportedly prompted investment banks to begin working on a "worst-case scenario" plan, CNBC reported.

"Trade war concerns have ebbed and flowed in the last eighteen months, that part isn't new," Putri Pascualy, managing director for investment firm PAAMCO, told Fox Business.

"What is new is market reaction. Previously investors happily shrugged trade risk, citing growth as a reason for bullishness. These days, risk factors aren't being shrugged off so easily. The math on risk premia for multiple asset classes have changed."

Faig Mahmudov