US stock markets continued to fall on Tuesday, eradicate all 2018 gains as technology stocks glowed again and fear of a trade crisis with China concerned investors.
Dow Jones Industrial Average had lost more than 560 points in mid-morning, a slide of more than 2% and Nasdaq, Apple's home, Amazon, Facebook and many other tech giants, down 2% after similar cases on Monday.
Shares seemed to be rallying before noon, but analysts said it was likely that more would turn. "I do not think Santa Claus will roll in and give us a meeting for Christmas," said Michael Antonelli, CEO, Institutional Sales Trade at Robert W Baird in Milwaukee.
The wider American economy still looks rosy red. Unemployment has remained unchanged since the Vietnam war, business understanding is high and interest rates low, despite a series of small increases. But stock markets are often a leading indicator of economic trends, and investors are facing problems in the future.
"Many of the calculations are already in extreme terms," said Jack Ablin, chief investment officer in Cresset Capital. "In many respects, we are on the North Pole. Whatever steps we take, it will be south."
Much of the fall has been driven by problems in the so-called Faang companies (Facebook, Apple, Amazon, Netflix and Google) whose phenomenal growth had driven stock markets to record high.
Apple and then Amazon were The first companies were valued at over $ 1
Investors have "threw growth stocks and tech into the trash," said Antonelli. "It's not that there's new news. It's excitement and nervousness."
The large size of technology companies had supported the stock market, and their recent wobbles were exposed to "worsening" in the broader market, "said Ablin. Corporate America has bought its own shares and increased its share price as a result of a record $ 115 billion record during the first three quarters of 2018. Federal Reserve's decision to hold interest rates is likely to be trend, said Ablin .
Tuesday's sales went after dealer Target released its latest results. CEO Brian Cornell said it was absolutely "no sign" that spending spending was cooling ahead of the party season, but investors responded badly to news. Revenues were less than expected. Shares dropped 9% in morning trading and pulled the rest of the retail trade down with it.