We use a range of cookies to give you the best possible browsing experience. By continuing to use this website, you agree to our use of cookies.
You can learn more about our cookie policy here, or by following the link at the bottom of any page on our site.

Free Trading Guides
EUR/USD
Bullish
Low
High
of clients are net long.
of clients are net short.
Long Short

Note: Low and High figures are for the trading day.

Data provided by
GBP/USD
Bullish
USD/JPY
Mixed
Gold
Bullish
Oil - US Crude
Mixed
Bitcoin
Bearish
More View more
Notice

DailyFX PLUS Content Now Available Freely to all DailyFX Users

Real Time News
  • German Bund Yields Update: 2-Year: -0.734% 3-Year: -0.780% 5-Year: -0.718% 7-Year: -0.685% 10-Year: -0.510% 30-Year: 0.007%
  • RT @PeterHanksFX: The Pound popped after EU's Juncker said there can be a #Brexit deal by October 31 if the objectives of the Irish backsto…
  • Juncker: If the objectives of the backstop are met through alternative arrangements, we don't need the backstop $GBPUSD $EURGBP #Brexit
  • EU's Juncker says there can be a #Brexit deal by October 31 $GBP $FTSE
  • it's time to make this happen https://www.dailyfx.com/registerToSeminar?webinar=3952937094787220994&utm_source=Twitter&utm_medium=DFXGeneric&utm_campaign=twr https://t.co/Jm9LmYaYs1
  • US Treasury Yields Update: 2-Year: 1.742% 3-Year: 1.680% 5-Year: 1.651% 7-Year: 1.725% 10-Year: 1.772% 30-Year: 2.213% $TNX
  • A chart that I don't check as frequently as most majors, indices and the like, $NZDCAD is leaning on some big support https://t.co/bJrEQp5QGt
  • IG Client Sentiment Update: Our data shows the vast majority of traders in Ripple are long at 97.67%, while traders in France 40 are at opposite extremes with 85.60%. See the summary chart below and full details and charts on DailyFX: https://www.dailyfx.com/sentiment https://t.co/KnXJPN0iq9
  • RT @carlquintanilla: NEW: “The United States is set to ramp up the pressure on China if a trade deal is not agreed soon, a key White House…
  • #Oil started this week with a bang after a number a disruption of production in Saudi Arabia following this weekend’s drone attacks.. Get your crude oil #technicalanalysis from @JStanleyFX here: https://t.co/uAw5kJTrfO #OOTT https://t.co/JGydFfVPNK
S&P 500 Suffers Largest Gap Lower Since 2009 as Trade War Rages

S&P 500 Suffers Largest Gap Lower Since 2009 as Trade War Rages

2019-05-13 17:15:00
Peter Hanks, Junior Analyst
Share:

S&P 500 Price Outlook:

  • Monday’s S&P 500 gap is the fourth largest for the index in the last two decades
  • The Dow Jones and Nasdaq shared similar fates as they fell under considerable selling pressure
  • As investors fret over the consequences from the US-China trade war, Will the Stock Market Crash in 2019?

S&P 500 Suffers Largest Gap Lower Since 2009 as Trade War Rages

After China announced it would increase tariffs on the United States, the US-China trade war has found itself at the forefront of investor concern once more. In response to the announcement, US equities fell across the board. The tech-heavy Nasdaq 100 slipped farthest, down -3.35% at the time of this article’s publication. Not to be outdone, the blue-chip Dow Jones traded -2.60% lower and the S&P 500 suffered a similar fate, down -2.60%. Contributing to the declines were some of the largest lower gaps in decades.

S&P 500 Daily Gaps by Percent

S&P 500 price chart

To start Monday’s session, the S&P 500 suffered its largest gap lower since May 11, 2009 when the Index opened -1.66% beneath its close in the session prior. At -1.43%, Monday’s gap is the fourth largest for the Index in the last 20 years. Beyond the initial pain, the Index is on pace for its worst daily performance since January 3 when it sold off -2.48%.

Dow Jones Daily Gaps by Percent

S&P 500 Suffers Largest Gap Lower Since 2009 as Trade War Rages

The Dow Jones offered a similar performance, posting its third largest gap lower since 2001 at -1.44%. The Industrial Average is also on pace for its worst daily performance since January 3 when it closed the session -2.82% beneath the open.

Nasdaq 100 Daily Gaps by Percent

S&P 500 Suffers Largest Gap Lower Since 2009 as Trade War Rages

The more-volatile Nasdaq 100 suffered the largest gap of the three major indices but fell short of breaking any multi-year milestones. Still, the Index’s gap was the largest in the year-to-date at -2.65%.

View our Economic Calendar for upcoming data releases.

Despite the considerable selling pressure Monday, trade war concern is unlikely to dissipate as Chinese officials weigh other avenues for retaliation. Across the board, US equities are now comfortably beneath their all-time highs as they grasp for support. As equity volatility continues and the trade war rages, follow @PeterHanksFX on Twitter for real time updates and price action analysis.

--Written by Peter Hanks, Junior Analyst for DailyFX.com

Contact and follow Peter on Twitter @PeterHanksFX

Read more: Stock Market Volatility and its Relationship with S&P 500 Returns

DailyFX forecasts on a variety of currencies such as the US Dollar or the Euro are available from the DailyFX Trading Guides page. If you’re looking to improve your trading approach, check out Traits of Successful Traders. And if you’re looking for an introductory primer to the Forex market, check out our New to FX Guide.

provides forex news and technical analysis on the trends that influence the global currency markets.

DISCLOSURES

News & Analysis at your fingertips.