NEW YORK, New York – U.S. and global stocks fell sharply on Monday while the rally in the U.S. dollar extended.
“Not only are people worried that earnings are going to come in weak because of an economic slowdown, but also because of the rise of the U.S. dollar, which creates a headwind for earnings for multinationals,” Robert Pavlik, senior portfolio manager at Dakota Wealth Management told Reuters Monday.
Technology stocks took the brunt of the selling with the Nasdaq Composite losing 262.71 points or 2.26 percent to 11,372.60.
The Dow Jones Industrial Average fell 164.31 points or 0.52 percent to 31,173.84.
The Standard and Poor’s 500 was off 44.95 points or 1.15 percent at 3,854.43.
The U.S. dollar sent all the major currencies tumbling. The euro was almost at parity, last trading at 1.0038 at the New York close Monday. The British pound slumped to 1.1892. The Japanese yen slid to 137.43. The Swiss franc sank to 0.9829.
The Canadian dollar was steady at 1.3000. The Australian and New Zealand dollars dropped like a stone to 0.6736 and 0.6107 respectively.
Overseas, the German Dax declined 1.40 percent. The CAC 40 in Paris dropped 0.61 percent. In London, the FTSE 100 was flat, after closing 0.35 of a single point higher,
Political instability in the UK, Japan, and Sri Lanka rattled Asian markets on Monday with most indices closing lower.
The main exception was in Japan, where the Nikkei 225 surged 295.11 points or 1.11 percent to 26,812.30 .
In Australia, the All Ordinaries dropped 84.40 points or 1.23 percent to 6,792.60.
South Korea’s Kospi Composite lost 10.37 points or 0.44 percent to 2,340.24.
In Hong Kong, the Hang Seng retreated 601.58 points or 2.77 percent to close at 21,124.20.
China’s Shanghai Composite closed 42.49 points or 1.27 percent lower at 3,313.58.
In New Zealand, the S&P/NZX 50 declined 63.10 points or 0.56 percent to 11,106.14.