Wall Street sinks on renewed tariff threat
Stocks on Wall Street plunged on the first trading day of May as trade war concerns returned to the fore. Investors were rattled by a profit warning from tech stalwart Amazon and President Donald Trump's threat to slap new retaliatory tariffs on China over the health crisis.
The Dow and S&P 500 dropped more than 2-and-a-half percent, and the Nasdaq lost over 3%. For the week, stocks lost ground.
RiverFront Investment Group Senior Portfolio Manager Rebecca Felton:
SOUNDBITE: REBECCA FELTON, SENIOR PORTFOLIO MANAGER, RIVERFRONT INVESTMENT GROUP (ENGLISH) SAYING:
"We have had such a strong run up, and we didn't have any good news to fuel it. It was just optimism around reopening on the economic front as we see some of the states start to reopen their economies.
The biggest decliner on the Nasdaq and S&P: Amazon. The e-commerce giant warned it could post its first quarterly loss in five years. It's spending at least $4 billion in response to the pandemic.
Energy was the day's worst performing sector. The crude price crash slammed Exxon Mobil and Chevron's results.
Tesla shares tumbled. CEO Elon Musk tweeted that the electric carmaker's high-flying stock was "too high." Tesla has not responded to requests for comment. He had settled a dispute with regulators over his use of Twitter last year
Clorox was a bright spot. Shares bolted higher after the maker of bleach and personal hygiene products reported its biggest sales increase in a decade. Shoppers stockpiled the company's disinfectants and cleaning products to try to avoid catching the virus.