Day Traders Diary
The major averages fell in first trading day of September, historically the second toughest month of the year, after the world's two largest economies began imposing new tariffs on each other's goods. Weaker than expected manufacturing data out in the middle of the morning further damped investor sentiment. The Dow Jones Industrial Average finished down 285 points or 1.1%, at 26,118. The S&P 500 lost 0.7% to end the day at 2,906 while the Nasdaq Composite pulled back 1.1% to 7,874. Equities hit their session lows after the Institute for Supply Management said U.S. manufacturing activity contracted last month for the first time since early 2016.
The U.S. imposed 15% tariffs on a variety of Chinese goods on Sunday, while China imposed new charges on U.S. products from Sept. 1. It marked the latest escalation in their long-running trade war.
Retail stocks fell broadly. The SPDR S&P Retail ETF (XRT) closed 1.5% lower, led by declines in Signet Jewelers and Guess. Signet dropped 9.5% while Guess lost 8.1%.
Chipmakers such as Nvidia and Skyworks Solutions fell 2% and 1.5%, respectively. Boeing and Caterpillar both declined more than 1.6% while Apple lost 1.5%. Boeing was also under pressure after a report said the 737 Max jet could remain grounded through the holiday season.All comments contained herein are for informational purposes only, and should not be considered as a solicitation to buy or sell any security. The firm does not guarantee the accuracy or completeness of the information or make any warranties regarding results from it's usage.