Stocks tumble as China retaliates
U.S. stocks and commodities tumbled after China retaliated with higher tariffs on a range of American goods.
The S&P 500 headed for the biggest slide in four months and the Dow Jones Industrial Average slumped more than 500 points after China targeted some of the nation’s biggest exporters. Boeing dropped 4.2%, Caterpillar Inc. fell 4.8% and Apple Inc. lost 5.2%. The new penalties also took aim at American farmers, pushing down soybean and cotton prices.
Shares came off lows in afternoon trading as President Donald Trump indicated he’ll speak with China’s Xi Jinping at the end of June during the G-20 summit and said he hasn’t yet decided about fresh tariffs on the remaining $300 billion in Chinese imports. Trade rattled financial markets again, with stocks sinking for the fifth time in six sessions since China’s defiance of Trump’s warning not to retaliate for his imposition of higher tariffs Friday escalated the skirmish, driving demand for havens from gold to the yen while punishing risk assets.
Elsewhere, European shares dropped more than 1% after the European Union said it was finalizing a list of U.S. goods to target in the event Trump imposes levies on car imports. Oil turned lower after rising earlier on concerns about rising tensions in the Persian Gulf. Bitcoin climbed above $7,000 as the recent gains in cryptocurrencies extended over the weekend.
Amazon starts incentive program
First, Amazon made two-day shipping the norm. Now, as it aims to cut that to a single day, the company is encouraging its employees to quit and start their own delivery businesses. Under a new incentive program, announced on Monday, Amazon said that it would fund up to $10,000 in startup costs and provide three months of pay to any employee who decides to make the jump. The new incentives build on a program the company launched last June to encourage anyone, employee or not, to get into the competitive business of last-mile package delivery.
Verdict: Roundup caused cancer
A jury in Oakland, California, ordered Monsanto on Monday to pay a couple more than $2 billion in damages after finding that its Roundup weedkiller caused their cancer — the third jury to conclude that the company failed to warn consumers of its flagship product’s dangers. Thousands of additional lawsuits against Monsanto, which Bayer acquired last year, are queued up. The couple, Alva and Alberta Pilliod, used Roundup on their property for decades. In 2011, Alva Pilliod, now 76, was given a diagnosis of non-Hodgkin’s lymphoma. In 2015, his wife, who is 74, learned she had the same disease.