U.S. stocks dropped hard on Monday, kicking April off to its worst start since the Great Depression … I’m serious. But it wasn’t just the U.S. that was hit hard yesterday, as global markets like the Shanghai Composite and the DAX also suffered notable losses of 0.84% and 1.31%, respectively.
When it comes to U.S. equities, the selling was spurred by ongoing weakness in big-cap tech stocks. All the one-time “market generals” are getting taken out by sniper fire.
President Trump renewed his attack on Amazon.com, Inc. (NASDAQ:AMZN). Tesla Inc (NASDAQ:TSLA) continues to suffer doubts around Model 3 production. And even Intel Corporation (NASDAQ:INTC) — the lone Dow 30 stock that was staying aloft above its 50-day moving average — was hit by word Apple Inc. (NASDAQ:AAPL) wants to start using their own processors in Macs.
The S&P 500 fell 2.2% to drop below its 200-day moving average for the first time since June 2016. 11 of 11 sectors finished in the red. And 8 of 11 groups lost more than 2%.
Looking ahead, watch for a relief rebound on Tuesday given the extreme measures of selling pressure seen yesterday. For example, every single stock in the Nasdaq 100 declined. Over the last 22 years, there have been only 10 other days like this. Put option traders are at their most active since October 2015.
Also expect some sort of ruckus today that’s not directly related to tech stocks with Dave & Buster’s Entertainment Inc (NASDAQ:PLAY) reporting earnings at the end of the day and U.S. truck and auto sales being revealed.
Check out Serge Berger’s Trade of the Day for April 3.
Today’s Trading Landscape
To see a list of the companies reporting earnings today, click here.
For a list of this week’s economic reports due out, click here.
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