Markets

Stock Market Today: Trump's Swing at China Sends Nasdaq Into Correction

The Nasdaq has plunged 10% in three days, with the latest hit coming Tuesday after President Trump suggested an economic "decoupling" with China.

A stock market that was already full of jitters got something a little more tangible to worry about over the weekend, and that spilled out into Tuesday trade that sent the Nasdaq Composite into a correction.

President Donald Trump on Labor Day said America would "end reliance on China once and for all, whether it's decoupling or putting in massive tariffs like I've been doing already." China, meanwhile, announced an initiative to help set global data-security standards -- a counter to America's "Clean Network" guidelines that would exclude some Chinese firms.

Large tech firms took the worst of it, including Tesla (TSLA, -21.1%). Standard & Poor's surprised many market observers by not adding the electric vehicle maker to the S&P 500. Instead, online marketplace Etsy (ETSY), automatic test equipment supplier Teradyne (TER) and health care tech and manufacturing firm Catalent (CTLT) will be elevated as of Sept. 21. Out will be tax preparer H&R Block (HRB), beauty company Coty (COTY) and discount department-store chain Kohl's (KSS).

The tech-heavy Nasdaq Composite finished 4.1% lower to 10,847. The blue-chip index has now dropped 10% in the past three trading sessions, putting it in correction territory (a drop of 10% or more).

Other action in the stock market today:

  • The Dow Jones Industrial Average closed with a 2.3% decline to 27,500.
  • The S&P 500 lost 2.8% to 3,331.
  • The Russell 2000 was the "least bad" major index, declining 2.0% to 1,504.

Also, don't forget to check out this week's earnings calendar to see which pivotal reports are coming up.

Know How to Protect Yourself 

If you haven't already, consider reviewing your defensive options. Even if the market isn't looking over a deep cliff like it was in late February, more experts are calling for continued turbulence in the weeks ahead. "Market volatility is returning after months of steady advances in risk assets," writes the BlackRock Investment Institute. "Valuations have risen, and we could see greater volatility in coming months as a result, especially as the U.S. election closes in."

Bonds and gold could yet again act as stores of protection, but it's easier buy both with funds -- these seven gold ETFs allow you to buy either the metal itself or the miners who collect it, while these 12 bond funds provide access to several categories of fixed income.

But if you want to remain invested in stocks while still shielding yourself from catastrophe, utility stocks are returning to form. Here, we examine 11 top-rated utility stocks to buy now, including a couple of sector picks that have really broken the mold this year.

Most Popular

Your Guide to Roth Conversions
Special Report
Tax Breaks

Your Guide to Roth Conversions

A Kiplinger Special Report
February 25, 2021
How to Calculate the Break-Even Age for Taking Social Security
social security

How to Calculate the Break-Even Age for Taking Social Security

When it comes to maximizing your Social Security benefits, there are many elements to consider. One factor that can be especially enlightening is your…
August 30, 2021
Spend Without Worry in Retirement
Financial Planning

Spend Without Worry in Retirement

Fears of running out of money prevent many retirees from tapping the nest egg they’ve worked a lifetime to save. With these strategies, you can genera…
August 30, 2021

Recommended

Stock Market Today (9/16/21): Stocks Weeble, Wobble, But Finish Mostly Flat
Stock Market Today

Stock Market Today (9/16/21): Stocks Weeble, Wobble, But Finish Mostly Flat

An up-and-down session Thursday finished with muted results despite a volley of encouraging economic signals.
September 16, 2021
Stock Market Today (9/15/21): Energy Leads Broad Market Snap-Back
Stock Market Today

Stock Market Today (9/15/21): Energy Leads Broad Market Snap-Back

Upbeat economic data helped provide a tailwind for most stocks, but energy really shone as tight inventories sent oil prices soaring.
September 15, 2021
5 Medtech Stocks to Seize Major Growth
stocks

5 Medtech Stocks to Seize Major Growth

The merging of healthcare and technology is changing how we care for our bodies. It's also creating investment opportunities, such as these five medic…
September 15, 2021
Stock Market Today (9/14/21): Dow Drops as Brief Boost From CPI Data Fades
Stock Market Today

Stock Market Today (9/14/21): Dow Drops as Brief Boost From CPI Data Fades

A morning jolt from an August cooldown in inflation proved ephemeral Tuesday, with early gains fizzling into widespread declines.
September 14, 2021