Selloff Continues Following Additional China Tariffs

Here is a daily recap of the S&P 500 broken down by sector followed by sector heat map as selloff continues following additional China tariffs. Stocks in heat map are based on the top 10 holdings of each sector ETF. Click on each picture to zoom in. Below is a summary of today’s action on Wall Street provided by CNBC:

Dow futures bounce back after Fed cools expectations of further rate cuts

U.S. stock index futures rebounded Thursday morning, after tanking a day earlier when the Federal Reserve dampened hopes of a lengthy easing cycle following a 25-basis-point rate cut. Around 6 a.m. ET, Dow futures indicated a gain of more than 80 points at the open. Futures on the S&P and Nasdaq were slightly higher.

The S&P 500 (SPY) dropped -0.90% today. Sector decliners led advancers 8 to 3 as shown below in the sector graph. Consumer discretionary (XLY), energy (XLE), financials (XLF) and industrials (XLI) led decliners down, each losing more than 1%. Communication services (XLC), consumer staples (XLP), materials (XLB) and technology (XLK) each suffered small losses of less than 1%. Utilities (XLU) led advancers higher with a gain of +1.02%. Healthcare (XLV) and real estate (XLRE) each squeezed out minor gains of less than 1%.

The Dow Jones index sank -280 points (-1.05%) to close at 26,583. The Nasdaq dipped -64 points (-0.79%) to settle at 8,111.

Selloff Continues Following Additional China Tariffs

Stocks continued their selloff on Thursday after President Trump announced the US would impose an additional 10% tariff on Chinese imports to the US.  The tariff would take affect September 1st. The President announced the actions via Twitter:

The 10 year bond yield dove to 1.892%, after the news, its lowest yield in almost 3 years.  This comes after the FOMC cut interest rates 25 basis points but hinted further rate cuts are not a certainty.

Key Takeaways…

I took the following CNBC screenshots today regarding lay of the land, market positives, rotation underway and driving the action:

Notable S&P 500 Movers…

Below I’ve highlighted some notable S&P movers (both winners & losers).

Credit: Sector Graph provided by Sector SPDR app. Sector breakdown provided by Charles Schwab. Sector heat map provided by finviz. Information Credit: News Headlines and quotes were taken from CNBC in the writing of this post.

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8/1/19

S&P 500 Sector Graph

Selloff Continues Following Additional China Tariffs

S&P 500 (SPY)

Selloff Continues Following Additional China Tariffs

Communication Services (XLC)

Selloff Continues Following Additional China Tariffs

Consumer Discretionary (XLY)

Selloff Continues Following Additional China Tariffs

Consumer Staples (XLP)

Selloff Continues Following Additional China Tariffs

Energy (XLE)

Selloff Continues Following Additional China Tariffs

Financials (XLF)

Selloff Continues Following Additional China Tariffs

Real Estate (XLRE)

Selloff Continues Following Additional China Tariffs

Healthcare (XLV)

Industrials (XLI)

Materials (XLB)

Technology (XLK)

Utilities (XLU)

S&P 500 Sector Heat Map

 

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