Massive Loss for Dow as Fear and Greed Index Moves into “Fear”
The Dow is down more than 800 points as tariff troubles take their toll on the stock market this week with new global tariffs.
Quick overview
- The Dow Jones Industrial Average is poised for its worst day in weeks, expected to lose over 800 points due to tariff disputes.
- The Supreme Court has struck down most of President Trump's tariffs, prompting him to retaliate with new global tariffs of 10%.
- The Dow has dropped 1.60% and is now in the 'Fear' rating on the Fear and Greed Index, indicating negative market sentiment.
- Key stocks like IBM and Salesforce have seen significant declines, with expectations of further losses in the tech and financial sectors.
The Dow Jones Industrial Average is set to have its worst day in weeks as it prepares to lose more than 800 points during Monday trading after tariff tussle.
The Supreme Court struck down most of President Donald Trump’s tariffs he enacted over the past 12 months, and he retaliated with new global tariffs of 10%. The stock market took the news hard, and the Dow is set to lose more than 800 points today.
The Dow Jones moved down 1.60% on Monday and shifted down on the Fear and Greed Index as well- an indicator of market sentiment. Now, it rests firmly in the Fear rating, and it is a telling sign of where the market is headed, despite the near record high finishes in recent weeks.
Dow Drops as Fear Rises
The Dow is down more than the bearish Nasdaq and S&P 500 indices, losing hundreds of points in a matter of hours. This is one of its sharpest drops in weeks and could indicate a strong bear trend that may keep the stock market in its grip throughout the week.
Several key stocks are losing plenty of ground so far this week on the Dow. A few stocks can skew the market overall, and the strongest downward pull is coming from International Business Machines Corp. (IBM) which fell 10% today. Outside of the tariff upheaval, there is no other strong indicator that would tell us why this is happening, and the stock is expected to recover partially in the next few days.
We warned that technology stocks would take the brunt of the tariff issue this week, and that is holding true so far. Salesforce (CRM) dropped 5.15% of its value today to hit $175.63 per share. That is the lowest this stock has been in months, but even before the tariff incident last week, the stock was already headed downward.
Financial stocks are also losing out this week, with Visa (V) and American Express (AXP) dropping 4.5% and 5.9%, respectively. Goldman Sachs (GS) contributed to a poor Dow showing today too with 3.44% in losses. We anticipate further losses for financial and tech stocks as the tariff issue drags on, and with Trump pushing back against the Supreme Court decision, the stock market is caught in the crossfire.
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