Wall Street weakened on Monday as investors worldwide become more sceptical about US investments because of President Donald Trump’s trade war and his criticism of the Federal Reserve, which are shaking the traditional order.
The S&P 500 sank 2.4% in another wipe out. That yanked the index that’s at the centre of many 401(k) accounts 16% below its record set two months ago.
The Dow Jones Industrial Average dropped 971 points, or 2.5%, while losses for Tesla and Nvidia helped drag the Nasdaq composite down 2.6%.
The falls mean pension funds across the world fell in value.
Perhaps more worryingly, US government bonds and the value of the US dollar also sank as prices retreated across US markets.
It’s an unusual move because Treasurys and the dollar have historically strengthened during episodes of nervousness.
This time around, though, it’s policies directly from Washington that are causing the fear and potentially weakening their reputations as some of the world’s safest investments.
