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A presidential attack on Amazon, the aftermath of FAANG drama, and trade wars have The Dow plunging 700 points while investors worry what could be next.
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3 Reasons Why The Dow Dropped 700 Points
The Dow dropped 700 points and the Nasdaq plunged about 3% on Monday. The Nasdaq has plunged 9.5% from its all-time high on March 12. All three major indexes are down for the year. The VIX volatility index jumped more than 15%.
Trump once again accused Amazon of taking advantage of the US Postal Service. However, Amazon pays the same lower rate that the post office charges other bulk shippers, and it collects sales tax in every state that charges it.
FAAANG Gang Takes a Hit
The famous FAANG quintet of Facebook Inc. (NASDAQ: FB), Amazon.com Inc. (NASDAQ: AMZN), Apple Inc. (NASDAQ: AAPL), Netflix, Inc. (NASDAQ: NFLX) and Google parent Alphabet Inc. (NASDAQ: GOOGL) is an acronym for five high-performing technology stocks in the U.S. equity markets are down.
Wall Street Worried Over China's Retaliation
Beijing responded to Trump's bump on steel and aluminum tariffs on Monday by imposing tariffs on $3 billion of US imports. The tariffs apply to 128 products, ranging from pork and meat to steep pipes. Trump plans to place tariffs on about $50 billion more of Chinese goods.
“A reassessment of technology as well as what the trade issues might mean for exporting U.S. companies are hitting the market at the same time,” Rick Meckler, President of LibertyView Capital Management told The Globe and Mail.
People are anxiously awaiting Beijing's response.
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