Donald Trump Amazon criticism, the fears of a trade war and tougher regulation on technology companies sent stocks plunging Monday. What stocks were affected and how can investors benefit not only from price growth but from price decline? Let’s discuss this!
5 April, Capital.com – A previous comment of capital.com might have inspired Tesla founder Elon Musk to post the joke about bankruptcy. However, the joke did not help Tesla to overcome the downtrend same as the whole technology industry.
Stock indices in the US showed another decline on Monday after a new wave of criticism was addressed at the internet giant Amazon by President Donald Trump.
Amazon shares fell as Trump renews attack
Amazon shares fell 5.2% after US President Trump accused the company of abusing US Post tariffs. Industry experts are of the opinion that Amazon pays US Post only half of what FedEx and other fully private companies charge for the same shipping services.
Trump mentioned that US Post loses a fortune by executing Amazon orders, and this will be changed. Last week, the US president already announced that he was ready to start an anti-monopoly or tax investigation against Amazon. This news led the company’s shares to fall by almost 9% in a two day period – the company lost $66 billion in capitalisation during this time.
Donald Trump Amazon criticism affects technology stocks further
Further news, which led investors to anxiety and stocks going down was the news that China raised tariffs on American goods in response to Trump’s decision to impose new import duties on Chinese imports.
Amongst the top stocks hit we see Cisco, Nvidia, and Intel. The last – Intel – was already under pressure following the announcement by Apple that they are going to replace Intel chips with their own as early as 2020. This announcement caused Intel stocks to fall more than 6%. The stocks above relate to chipmakers and as they are closely related to geopolitical issues, it is not surprising they are the most affected.
The so-called FANG+ index is diving as well. Facebook, Amazon, Netflix, Google and some other global firms, such as Tesla, for instance, fell by an average of more than 4%. According to the data from Capital.com, the recent news affected traders in the technology sector. The number of trades rose by approximately 50% and on average more than 30% of newly opened positions were short positions.
European stocks finished lower following tech sell-off
European stocks are following the US market pattern, however not in such a severe way. Falling on Tuesday morning by 0.8% maximum. The majority of European stocks did not trade on Monday due to the Easter holiday. (FTSE 100 is down 0.7%, DAX lost –0.76%, FR 40 – 0.52%, Spain’s IBEX 35 lost – 0.57%).
All this is occurring at a time when everything is not going as it should in the technology sector and evidently it is undergoing a complicated period.
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While stocks are plunging – starting from the data breach scandal and extending to the tariffs issued – it is good to know that investors can benefit not only from price growth but from price decline as well. Opening short (sell) positions on CFD (contract for difference) platforms, like Capital.com, is one way to do so.
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This article Donald Trump Amazon criticism affects technology stocks further was provided by Capital.com.
Capital.com is a fintech startup providing an AI-powered trading platform designed to take trading to the next level. Available on both desktop and smartphone, the trading platform lets users trade CFDs on the world’s top markets including Forex, cryptocurrencies, commodities, indices and more. The company received a $25 million investment from VP Capital and Larnabel Ventures. Capital.com is licensed by CySEC.