Stocks' Second-Quarter Start Is Worst Since Great Depression
If you feel like the second quarter has begun badly, you’d be right.
(Bloomberg) -- If you feel like the second quarter began badly, you’d be right.
U.S. stocks had their worst April start since 1929, according to data compiled by Bloomberg. The S&P 500 index slumped 2.2 percent, a rout exceeded only by its 2.5 percent decline 89 years ago, a prelude to the devastating crash later that year that brought on the Great Depression. (Back then, the index only comprised 90 stocks.)
China’s retaliatory trade tariffs combined with President Donald Trump’s criticism of Amazon.com Inc. to send equities into a tailspin Monday. Shares in the online retailer tumbled, encouraging a sell-off in consumer discretionary and technology stocks. The S&P 500 closed below its 200-day moving average -- a key technical support -- and volatility climbed.
The stock slide also looked pretty bad when compared to the beginning of other quarters. Equities lost more than on any other quarterly first day since October 2011, when stocks plummeted 2.8 percent, Bloomberg data show.
To contact the reporters on this story: Rachel Evans in New York at revans43@bloomberg.net, Lu Wang in New York at lwang8@bloomberg.net.
To contact the editors responsible for this story: Jeremy Herron at jherron8@bloomberg.net, Andrew Dunn, Joanna Ossinger
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