Stocks kicked off the week trading lower on Monday as the Trump administration is reportedly preparing to restrict investment in U.S. technology by Chinese companies.
The Dow Jones Industrials plummeted 309.01 points, or 1.3%, to 24,271.88, with Boeing and Intel as the biggest decliners in the index.
The S&P 500 dropped 35.39 points, or 1.3%, to 2,720.01, as tech declined 1.6%.
The NASDAQ jettisoned 136.78 points, or 1.8%, to 7,555.46, as Facebook, Amazon, Netflix and Google-parent Alphabet dropped.
Shares of chipmakers Intel, Micron Technology and Nvidia all fell at least 1.5%. Boeing sank 1.9%, Caterpillar by 1.4%,and General Motors fell by 0.9%. All companies have significant exposure to China. Boeing, Caterpillar and GM were also on track to post large monthly losses.
Campbell Soup rose more than 8% on a report from the New York Post that said the company is drawing possible takeover interest from Kraft Heinz.
The Wall Street Journal reported Sunday that President Donald Trump plans to bar several Chinese companies from making investments in U.S. tech. The newspaper also reported that the administration wants to block additional technology exports to China. Both measures are expected to be announced by the end of the week.
Increasing trade tensions between the U.S. and its key trade partners, including China, have kept Wall Street on edge. The major indexes finished last week lower after Trump asked the U.S. trade representative to target $200 billion worth of Chinese products for tariffs. Trump also raised the possibility of slapping a 20% charge on European cars.
Prices for the benchmark for the 10-year U.S.Treasury gained ground, lowering yields to 2.87% from Friday’s 2.9%. Treasury prices and yields move in opposite directions.
Oil prices gained 25 cents to $68.83U.S. a barrel.
Gold prices docked $1.30 to $1,269.40U.S. an ounce.
This article provided by NewsEdge.