Stocks opened in negative territory amid concerns over the lack of details from the “tariff truce” reached by U.S. President Trump and Chinese President Xi at the G20 meeting. As the day progressed, the sellers became more emboldened and pushed the Dow down over 3%. The tech heavy Nasdaq suffered an even greater decline, falling almost 4% to be the biggest loser of the day. Investors will have to wait until Thursday if they want to step in to buy the dip as U.S. stock markets will be closed tomorrow to honor the memory of former President George H.W. Bush, who passed away late last week.
ECONOMIC EVENTS: In the U.S., no economic data of note was released. In a series of tweets regarding trade, President Donald Trump said negotiations with China have already started and unless extended, "they will end 90 days from the date of our wonderful and very warm dinner with President Xi in Argentina." Trump added that "President Xi and I want this deal to happen, and it probably will [...] If a fair deal is able to be made with China, one that does all of the many things we know must be finally done, I will happily sign." In Europe, an advocate general of the European Court of Justice said that the U.K. should be able to unilaterally cancel its exit from the European Union. Additionally, Theresa May's government lost a vote and was found to be in contempt of Parliament after it refused to publish the full legal advice underpinning its Brexit plan.
COMPANY NEWS: Shares of Apple (AAPL) were under pressure after HSBC analyst Erwan Rambourg downgraded the stock to Hold as he believes growth in the company's core iPhone business is set to "slow dramatically." Meanwhile, iPhone supplier Cirrus Logic (CRUS) cut its third quarter revenue view due to smartphone weakness, becoming the latest in a line of the company's chip customers to do so. Apple shares fell 4.4% while Cirrus declined about 2%.
MasterCard (MA) shares were in focus after the company's board increased its quarterly cash dividend 32% to 33c per share and authorized the repurchase of up to $6.5B of its Class A common stock. The new share repurchase program will become effective at the completion of the company's previously announced $4B share repurchase program, MasterCard said.
MAJOR MOVERS: Among the noteworthy gainers was Clovis Oncology (CLVS), which rose 5% after the European Patent Office upheld its Rubraca patent claims. Also higher was RH (RH), which gained 11% after the luxury home hardware retailer reported better than expected quarterly results.
Among the notable losers was Veeva (VEEV), which fell 6% after short-seller Citron Research said that market correction should hit the stock "harder than any other SaaS" peer and put a $65 price target on the shares. Also lower was Conn's (CONN), which declined 14% after reporting quarterly results.
INDEXES: The Dow fell 799.36, or 3.1%, to 25,027.07, the Nasdaq lost 283.09, or 3.8%, to 7,158.43
, and the S&P 500 declined 90.31, or 3.24%, to 2,700.06