Banks and technology companies drove a broad slide in stocks on Wall Street on Monday afternoon, knocking the Dow Jones industrial average down more than 300 points.
The sell-off added to losses the market racked up last week amid heightened anxiety over the continuing trade war between the United States and China.
The week of wild swings was fueled by investors’ worries that the fallout from the costly trade conflict would hurt corporate profits and hamper an already slowing global economy.
Traders shifted money into government bonds on Monday, sending bond prices higher. Yields move lower when bond prices rise, and as investors poured money into the bond market, the yield on the 10-year Treasury fell to 1.65 percent from 1.73 percent late Friday. The yield is used as a benchmark for interest rates on mortgages and other consumer loans.
The drop in bond yields weighed on financial sector stocks. Technology, health care and consumer discretionary sector stocks accounted for much of the market decline.
Investors are facing a relatively slow week for economic reports and corporate earnings. The Labor Department will release its Consumer Price Index for July on Tuesday and the Commerce Department will release retail sales results for last month on Thursday.
Macy’s reports quarterly results on Wednesday, and Walmart is to report its results on Thursday. They are among the last major companies to report earnings for the most recent quarter.
The S&P 500 index was down 1 percent as of 2 p.m. The Dow Jones fell 1.2 percent, and the Nasdaq composite dropped 1 percent.
For the S&P 500, the loss last week was the second consecutive weekly decline. It followed President Trump’s threat to impose more tariffs on Chinese goods, which Beijing responded to by allowing China’s currency to weaken.
Mr. Trump has said he would be “fine” if the United States and China did not go ahead with a meeting next month, damping investors’ hopes for a path to resolving the economically damaging trade war. (NYT)