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Wall Street is down after data from China revive a global slowdown

© Reuters. Traders work on the NYSE floor in New York

Medha Singh

(TASR) – Technology stocks on Monday brought Wall Street down after an unexpected decline in China's exports in December again raised fears of slowing global economic growth.

Trade data in China intensified concerns that US tariffs on Chinese goods are charging tolls on the world's second largest economy, prompting companies such as Apple Inc (O 🙂 to issue a profit warning.

Chipmakers, who earned much of their revenue from China, recorded a hit, with the Philadelphia SE () dropping 1.60 percent. Commercially sensitive Boeing Co. (On Caterpillar Inc (N 🙂 dropped by more than 1 percent.

Citigroup Shares of Inc (N 🙂 turned 3 percent despite a lower-than-expected earnings announcement after Chief Financial Officer John Gerspach said the slowdown in China was not a major disruption to global operations and the bank experienced improved business conditions for the first few days of the quarter. [vnL1N1ZE0G1]

"Given that the stock of banks is at the epicenter of what was very difficult in 2018, investors will focus on any encouraging trends or reassuring comments," said Yousef Abbasi, Strategic Global Market at INTL FCStone in New York.

Citigroup has launched a quarterly earnings season for large US banks, with JPMorgan Chase & Co (N 🙂 and Wells Fargo & Co (N 🙂 set to report revenue on Tuesday.

Ten of the 11 major S & P sectors were down, with the sector of the technology sector (0.87 percent) being the biggest driver on the S & P 500. The S & P () financial sector was the only gain that raised US stocks beyond its lowest value.

The recent acquisition of shares, which was affected by US-China trade optimism, and hopes of a slow rate of interest rate hikes, showed S & P 500 (10) of Christmas bonuses of 10%. The benchmark index is roughly 12 percent from its close on September 20.

"The biggest concern is probably China's trade data, and people see it from a global synchronized slowdown that is potentially rising," Abbasi said.

"We are definitely in an area where it could be a combination of things, including the fact that we've really gotten gathered from the bottom."

At 11:22 ET, the Dow Jones Industrial Average () dropped by 132.35 points, or 0.55 percent to 23,863.60, the S & P 500 () dropped by 16.34 points, which is 0.63 percent to 2,579.92, and Nasdaq Composite 61.20 points, or 0.88 percent, to 6,910.28.

Adding to a moody mood meant the partial abolition of the government that entered its 24th day, making it the longest intimidation of federal agencies in the history of the United States.

Analysts expect the S & P 500 to grow by 14.3 percent in the fourth quarter, as Refinitiv's IBES data shows. Profit for the year 2019 is likely to increase by 6.3 percent this year, which is much slower than the estimated growth of 23.4 percent in 2018, which was mostly supported by lower corporate tax rates.

Among other shares, PG & E Corp (N 🙂 declined by 49.22 percent after the largest US energy company said it was going to bankruptcy in all chapters.

Declining issues outpaced gains for the NYSE ratio of 2.24 per 1 and the Nasdaq 2.36 per 1 ratio.

The S & P index recorded no new 52-week highs and one new while the Nasdaq recorded 11 new highs and 11 new minima.

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