After a rough week for technology stocks, the opening bell on Monday brought little relief to investors. Tesla and Amazon were down big early, which is little comfort to securities traders who are already concerned over China implementing new tariffs on the U.S.
Monday saw Amazon fall by as much as 3 percent as President Donald Trump continued his Twitter attack on the largest online retailer in the world. Trump’s tirades claim that the way Amazon prices its goods costs the United States Postal Service as much as $1.50 per delivery. Trump claims that he will make the necessary changes, which he has not specified at this time.
The S&P 500, the NASDAQ and the S&P Consumer Discretionary Index were all down on the heels of Amazon’s early losses. The S&P technology sector was down 1.32 percent, which caused the index to realize its worst monthly average losses in almost two and a half years.
Other technology stocks that were down in early Monday trading include Facebook, Alphabet (Google), Netflix and Microsoft. Several of the stocks were down by as much as 2 to 3 percent. Tesla, the electric car maker, fell by as much as 5 percent as the company prepares to announce its quarterly earnings.
China announced on Sunday that it will impose tariffs on U.S. goods imported from the country. The country said it will add a 25 percent tariff on 128 products the U.S. imports. China’s new tariffs are in response to Trump’s recent tariffs on steel and aluminum. Additionally, Trump is reportedly preparing to impose new tariffs on China that are related to technology products.
Facebook stock continues to struggle as the company is still dealing with last month’s data scandal. Several analysts slashed Facebook’s price target on fears that company revenues will take a hit due to the lingering effects of the data scandal.