Worst second-quarter start since the Great Depression
The markets suffered on Monday as a result of a widespread sell-off which saw the S&P 500 plunge to below its 200-day moving average after a gloomy morning start which was the worst second-quarter kick-off since the Great Depression.
The S&P 500 closed on Monday at 2581.882, eight points lower than the 2,589 average it has maintained for the last 200 days and reaching its third lowest close of 2018.
The sharp 2.2 percent decline is the worst since 2.5 percent decline 89 years ago and is a sign that more grief is in store, at least temporarily.
The S&P 500 fell below its 200 day moving average of 2,589 and closed at 2,581.88 on Monday in the latest sign of downturn for the US markets
The Dow was also down by almost 2 per cent. It closed at 23,644.19, its second lowest of the year
'We've broken it, and we're sitting below it, which shows real selling, and the longer we stay below, the more probability we at least test the Feb. 9 low at 2,530-ish,' Scott Redler, partner with T3Live.com, told CNBC.
Among the sectors which suffered the greatest on Monday was technology.
Amazon's NASDAQ share price fell by 5.21 per cent to $1,371.99, the lowest it has been since February 9 when there was widespread Wall Street disruption.
The latest decline followed an attack from President Trump on Twitter on Sunday.
Intel also suffered (-6.07 percent) and Facebook (-2.275 percent) is still a long drop from its pre-Cambridge Analytica scandal high.
The Dow was also down. It closed at 23,644.19, 1.9 percent lower than on Friday and its second lowest this year.
Amazon continued to plunge as it reeled from the latest attack by Trump who, sources say, is 'obsessed' with tanking the tech giant
The turn cannot be attributed to industry alone and is, according to experts, an American problem.
'If I look at the global markets, it's really just the U.S. falling apart.
'It feels to me it's a U.S.-concentrated thing, which makes me think it's not as much related to trade as it is to technology and maybe regulatory headaches for some businesses coming out of D.C,' Jeff Kleintop, chief global investment strategist with Charles Schwab, told CNBC.
His expertise correlates with Trump's latest proclamation to change the 'unlevel playing field' between tech giants and brick-and-mortar businesses.
On Sunday, the president tweeted: 'Only fools, or worse, are saying that our money losing Post Office makes money with Amazon.
'THEY LOSE A FORTUNE, and this will be changed.
'Also, our fully tax paying retailers are closing stores all over the country...not a level playing field!'
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