Stocks Show Substantial Move To The Downside - U.S. Commentary

(RTTNews) - Stocks moved sharply lower during trading on Monday, with the major averages adding to the losses posted last week.

The major averages climbed off their worst levels of the day going into the close but remained firmly negative. The Dow tumbled 335.60 points or 1.4 percent at 24,610.91, the Nasdaq plunged 137.74 points or 1.8 percent to 7,344.24 and the S&P 500 plummeted 39.09 points or 2,712.92.

The sell-off on Wall Street reflected lingering concerns about a potential trade war as well as political uncertainty following recent developments in Washington.

Traders are also looking ahead to the Federal Reserve's highly anticipated monetary policy announcement on Wednesday.

With the Fed widely expected to raise interest rates by 25 basis points, traders are likely to keep an eye on the accompanying statement for clues about the outlook for future rate hikes.

New Fed Chairman Jerome Powell's first press conference as head of the central bank is also likely to attract considerable attention.

Reports on new and existing home sales, durable goods orders, and leading economic indicators may also impact trading in the coming days.

A steep drop by social media giant Facebook (FB) is weighing on the markets amid allegations political consulting firm Cambridge Analytica inappropriately obtained and used user data.

Telecom stocks showed a significant move to the downside on the day, dragging the NYSE Arca Telecom Index down by 2.6 percent.

Smartphone chip supplier Qualcomm (QCOM) posted a notable loss following news former chairman Paul Jacobs won't be re-nominated to the company's board.

Energy, computer hardware and steel stocks also showed considerable moves to the downside, reflecting broad-based weakness on Wall Street.

Other Markets

In overseas trading, stock markets across the Asia-Pacific region turned in a mixed performance during trading on Monday. Japan's Nikkei 225 Index slid by 0.9 percent, while China's Shanghai Composite Index rose by 0.3 percent.

Meanwhile, the major European markets have all moved to the downside on the day. While the French CAC 40 Index has fallen by 0.8 percent, the German DAX Index is down by 1.1 percent and the U.K.'s FTSE 100 Index is down by 1.3 percent.

In the bond market, treasuries have turned higher after seeing initial weakness. Subsequently, the yield on the benchmark ten-year note, which moves opposite of its price, is down by 1.1 basis points at 2.837 percent.

Looking Ahead

Trading activity may be somewhat subdued on Tuesday amid a lack of major U.S. economic data, and as the Fed begins its two-day meeting.