Investing.com - The S&P 500 snapped an eight-day winning streak as global growth jitters and concerns about escalating U.S. and EU trade tensions soured sentiment on U.S. stocks.
The Dow Jones Industrial Average slumped 0.72%, the S&P 500 lost 0.61%, while the Nasdaq Composite fell 0.56%.
The EU warned it stands ready to retaliate should the U.S. move ahead with tariffs on $11.2 billion worth of EU goods, raising fears that both the U.S. and the trading bloc are on a collision course. Both sides accuse the other of illegally subsidizing their respective aircraft makers, Boeing in the U.S. and Airbus in the EU.
The dispute has been tied up in litigation since 2004, but came to the fore last May when the World Trade Organization ruled that Airbus had received illegal government funding for its A380 and A350 models, adversely affecting Boeing's sales.
Trade aside, Boeing (NYSE:BA) came under fire after the aircraft maker said total orders, a measure of future demand, plunged to 95 aircraft in the first quarter from 180 a year earlier. The aircraft maker's much maligned 737 MAX jets saw orders plunge to zero following a worldwide grounding in March. Shares fell 1.5%.
Elsewhere, fears over global growth resurfaced, prompting investors to hold off of risky bets after the IMF cut its global growth outlook, citing Brexit-related uncertainties and U.S.-China trade tensions.
The IMF sees global economic growth of 3.3% this year, down from the 3.5% it forecast in January.
The broader market was also pushed back by falling energy stocks on the back of slump in oil prices as oversupply fears returned. The EIA lifted its forecast for 2019 and 2020 average U.S. oil production, while Russian President Vladimir Putin poured cold water on expectations for prolonged oil-production cuts, saying current oil prices were suitable for Moscow.
In tech, semis stumbled amid fears the rally in the sector so far this year has led frothy valuations in chips stocks.
“We downgrade semis to benchmark,” Morgan Stanley wrote in note Monday. "The sector is now discounting above-trend growth in the U.S. We worry about a lengthening smartphone cycle."
Advanced Micro Devices (NASDAQ:AMD), Micron Technology (NASDAQ:MU) and Applied Materials (NASDAQ:AMAT) ended the day nursing losses.
With just a three days to go until JPMorgan and Wells Fargo kick off the first-quarter earnings season on Friday, investors are seemingly reining in bets on a bullish quarter, with many expecting a tough road ahead.
First-quarter earnings are now expected to decline 4.2% year over year for S&P 500 companies, according to FactSet, compared to a 3.9% decline forecast just one week ago.
On the economic front, weaker-than-expected U.S. job openings added to the day's gloom.
Top S&P 500 Gainers and Losers Today:
Cerner (NASDAQ:CERN), Monster Beverage (NASDAQ:MNST) and Campbell Soup (NYSE:CPB) were among the top S&P 500 gainers for the session.
Pentair (NYSE:PNR), Under Armour (NYSE:UAA) and Advanced Micro Devices (NASDAQ:AMD) were among the worst S&P 500 performers of the session.