After The Bell: Stocks Plunge After China Announces New Tariffs

Andy Giersher
May 13, 2019 - 5:56 pm

(Photo by Drew Angerer/Getty Images)

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CHICAGO (WBBM NEWSRADIO) -- Stocks closed sharply lower Monday, after China raised tariffs on some U.S. goods, as the ongoing trade war between the world's two largest economies intensified.

The S&P 500 lost 69, the NASDAQ shed nearly 270 and the Dow Jones industrial average closed down 617 points, settling to 25,325.

"The NASDAQ has really been at the center of the trade issue at this point. Part of the reason why the NASDAQ and technology stocks, as a whole, have done much worse than the Dow or the S&P -- because they have been very reliant of China, both from a supply prospective as well as a market that they sell into," Paul Nolte, portfolio manager at Kingsview Asset Management in Chicago, said. "They are a lot more sensitive to the rumblings of trade and trade tariffs and trade wars than a lot of the other parts of the U.S. economy.” 

He adds that his firm has pared back some technology exposure and is taking a wait-and-see approach for the short term.