WASHINGTON (dpa-AFX) - Stocks have moved sharply lower during trading on Monday, with the Nasdaq and the S&P 500 showing substantial moves to the downside after ending last Thursday's trading little changed. The narrower Dow is also adding to the steep loss posted in the previous session, moving lower for the fourth straight day.
Currently, the major averages are just off their lows of the session. The Nasdaq is down 387.33 points or 2.4 percent at 15,899.12, the S&P 500 is down 102.92 points or 2.0 percent at 5,179.78 and the Dow is down 727.44 points or 1.9 percent at 38,414.79.
The weakness on Wall Street comes amid lingering concerns about a global trade war as traders await signs of progress from President Donald Trump's trade talks.
Potentially adding to the worries, China has threatened to retaliate against any countries that reach a trade deal with the U.S. at the expense of China's interests.
A spokesman for China's Ministry of Commerce was asked to respond to reports the Trump administration is preparing to put pressure on other countries to restrict trade with China in exchange for U.S. tariff exemptions.
'If this happens, China will never accept it and will resolutely take countermeasures in a reciprocal manner,' the spokesman responded, according to a Google translation. 'China is determined and capable of safeguarding its own rights and interests.'
Trump's attacks on the Federal Reserve's independence have also generated some negative sentiment, with the president calling Fed Chair Jerome Powell 'Mr. Too Late' and 'a major loser' in a post on Truth Social.
In the same post, Trump also claimed there will be 'almost no inflation' but warned 'there can be a SLOWING of the economy' unless Powell lowers interest rates.
Trump also called on the Fed to lower rates in a separate post last week, declaring, 'Powell's termination cannot come fast enough!'
Sector News
Semiconductor stocks are turning in some of the market's worst performances on the day, resulting in a 3.4 percent nosedive by the Philadelphia Semiconductor Index.
Substantial weakness has also emerged among airline stocks, with the NYSE Arca Airline Index plunging by 3.2 percent.
Oil service stocks have also pulled back sharply along with the price of crude oil, dragging the Philadelphia Oil Service Index down by 2.8 percent.
Networking, computer hardware and software stocks are also seeing considerable weakness, while gold stocks are bucking the downtrend amid a spike by the price of the precious metal.
Other Markets
In overseas trading, stock markets across the Asia-Pacific region turned in a mixed performance on Monday. Japan's Nikkei 225 Index slumped by 1.3 percent, while China's Shanghai Composite Index rose by 0.5 percent.
Meanwhile, the major European markets are closed on the day in honor of Easter Monday.
In the bond market, treasuries have bounced back near the unchanged line after seeing initial weakness. Currently, the yield on the benchmark ten-year note, which moves opposite of its price, is up by less than a basis point at 4.335 percent.
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