Dow Drops 286 Points, Oil Plummets Amid Trade Tensions
Chip stocks took another major hit, leading the tech sector even lower
The Dow suffered another triple-digit drop today, losing over 285 points, as trade tensions between the U.S. and China continue to flare up. Chip stocks continued to suffer as more companies cut ties with China's Huawei, and sluggish U.S. manufacturing data was salt in Wall Street's proverbial wounds. In response, the benchmark 10-year Treasury yield hit new 18-month lows, and oil prices plummeted on expectations for weakening demand. Against this backdrop, the Nasdaq and S&P finished lower as well.
Continue reading for more on today's market, including:
This red-hot tech stock could keep rallying, if history is any indicator. L Brands stock enjoyed its best day in years. An FDA nod helped fuel this pharma stock's rally. Plus, 2 software stocks analysts love; the steel stock expected to fall to $1; and 25 stocks to scoop up now.The Dow Jones Industrial Average (DJI - 25,490.47) lost 286.1 points, or 1.1%, in today's trading. Home Depot (HD) was atop the six winners with a 1.6% gain, while United Technologies (UTX) brought up the rear on a 3.7% loss.
The S&P 500 Index (SPX - 2,822.24) ended 34 points, or 1.2%, lower, and the Nasdaq Composite (IXIC - 7,628.28) slipped 122.6 points, or 1.6%.
The Cboe Volatility Index (VIX - 16.92) was 2.2 points, or 14.7%, higher.
5 Items on our Radar Today
Major bank name JPMorgan Chase just severed its relationship with OxyContin maker Purdue Pharma, on grounds that the drugmaker has played a major role in the ongoing opioid crisis in the U.S. Purdue, which has faced an onslaught of lawsuits in recent years, has picked up Comerica as its replacement. (CNBC)Temperatures of up to 99.5 degrees Fahrenheit have sparked wildfires in Israel, causing thousands of residents between Jerusalem and Tel Aviv to evacuate. By nightfall, police said, the fires were mostly extinguished. (Reuters)2 software stocks surging on analyst upgrades. The steel stock that just got hit with a $1 price target. 25 stocks with the best returns after Memorial Day.
Data courtesy of Trade-Alert
Oil Suffers Biggest Drop This Year
Increased anxieties over a trade war and reports of slowing manufacturing activity sent oil prices reeling. Crude for June delivery suffered its worst day this year, spiraling $3.51, or 5.7%, to settle at $57.91 per barrel.
June-delivered gold was higher again today, up $11.20, or 0.9%, to end at $1,285.40 an ounce, as the dollar softened and traders revisited the "safe haven" commodity as stocks tumbled.