Stocks sank after the Wall Street Journal and Bloomberg News reported that the administration intends to limit exports of some high-tech products to China, and will limit investment in technology firms by companies with substantial Chinese ownership. Treasury Secretary Steven Mnuchin suggested the investment restrictions wouldn’t be limited to China and the losses deepened. The Dow Jones Industrial Average lost as much as 496 points.
The market recovered some of those losses after Peter Navarro, one of President Donald Trump’s top trade advisers, told CNBC there was no plan for investment restrictions and that the administration’s probe into alleged technology theft is limited to China.
All but one of the 72 technology companies listed on the S&P 500 index fell Monday. Those companies have done far better than the broader market over the last year and a half and investors had considered them to be less vulnerable to tariffs than other sectors like manufacturing.
The S&P 500 index shed 37.81 points, or 1.4 percent, to 2,717.07, its worst loss since April 6. The Dow Jones Industrial Average lost 328.09 points, or 1.3 percent, to 24,252.80. The Nasdaq composite fell 160.81 points, or 2.1 percent, to 7,532.01. The Russell 2000 index of smaller-company stocks slid 28.07 points, or 1.7 percent, to 1,657.51.
Elsewhere, Harley-Davidson said it would move some production overseas to avoid tariffs the European Union is placing on motorcycles made in the U.S. Those tariffs were a response to taxes the U.S. placed on steel and aluminum from Europe. Its stock fell 6 percent to $41.57.
Chipmaker Micron Technology, which gets half its revenue from China, lost 6.9 percent to $53.16 and Advanced Micro Devices fell 4.4 percent to $15.11. Nvidia sank 4.7 percent to $239.12.
Germany’s DAX fell 2.5 percent and London’s FTSE 100 gave up 2.2 percent. France’s CAC 40 shed 1.9 percent. Hong Kong’s Hang Seng lost 1.3 percent. Tokyo’s Nikkei 225 shed 0.8 percent and in South Korea the Kospi was little changed.
The S&P 500 index of technology companies and the index of consumer-focused companies are both up 10 percent this year. The S&P 500 is up 1.6 percent.
Bond prices rose. The yield on the 10-year Treasury note fell to 2.87 percent from 2.89 percent.
Benchmark U.S. crude dipped 0.7 percent to $68.08 per barrel in New York. It climbed 4.6 percent Friday, its biggest one-day gain since late 2016. Brent crude, used to price international oils, dropped 1.1 percent to $74.73 per barrel in London.
OPEC countries agreed to produce more oil Friday, but investors aren’t sure the cartel will produce as much crude oil as it says it will.
Wholesale gasoline lost 0.9 percent to $2.05 a gallon. Heating oil fell 1.2 percent to $2.10 a gallon. Natural gas dipped 0.7 percent to $2.92 per 1,000 cubic feet.
Gold fell 0.1 percent to $1,268.90 an ounce. Silver lost 0.8 percent to $16.33 an ounce. Copper fell 1.3 percent to $2.99 a pound.
The dollar fell to 109.45 yen from 109.91 yen. The euro rose to $1.1704 from $1.1663.