The American stock market is falling against the backdrop of the risks of IT companies - ConsultFX

The American stock market is falling against the backdrop of the risks of IT companies

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According to experts, US stock indices remain under pressure due to investors' concerns about the trade conflict between the US and China. Mostly large IT companies are hit, analysts say.At the close of trading on Monday, November 19, the Dow Jones index fell by 1.6% to 25,017.44 points, the S & P 500 fell by 1.7% to 2,690.73 points. The most serious negative dynamics was demonstrated by the Nasdaq index: by the close of the trading session, it collapsed by 3%, to 7,028.48 points.Quotes of most major American IT corporations dropped significantly: Amazon's shares fell 5.1%, Apple fell 4%, Alphabet lost 3.8%, Netflix lost 5.5%, and Facebook lost 5.7%.One of the important reasons for the sharp fall in US stock market quotes, experts believe investors are worried about the protracted conflict between America and China. According to Sean Cruise, TD Ameritrade's trading strategy manager, the concerns of market participants about the US-Chinese trade war are a key factor in the decline in quotations in the IT sector. The aggressive rhetoric of the American administration at the recent ASEAN summit is estimated by many investors as evidence of the impossibility of reaching a compromise in a trade war between countries.According to experts, in the future, such a scenario will provoke a rise in spending on the part of American corporations. They may lose the lion's share of the Chinese market. At the same time, the level of costs will increase by several times, analysts believe. These are much more serious consequences compared with the tightening of the monetary policy of the Fed and the possible slowdown in the growth of the American economy in 2019, experts say.

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