Dow slumps nearly 400 points amid trade anxiety

Tech companies, banks take brunt of widespread selling

Stocks fell sharply on Wall Street Monday, knocking nearly 400 points off the Dow Jones Industrial Average.

The benchmark S&P 500 had its worst day in a week as the sell-off put the market deeper into the red for August. The selling was widespread, with technology companies and banks accounting for a big share of the decline.

Investors sought safety in U.S. government bonds, sending their yields tumbling. The price for gold, another traditional safe-haven asset, closed higher.

The costly trade war between the U.S. and China has rattled markets this month. An escalation in tensions between the world’s largest economies has stoked worries that the long-running trade conflict will undercut an already slowing global economy.

“Trade and the concern that as this escalates it continues to wear on confidence to a point that this actually causes a recession, that’s what people are wrestling with,” said Ben Phillips, chief investment officer at Eventshares.

The latest wave of anxious selling left the S&P 500 index down 35.56 points, or 1.2 percent, at 2,883.09. The Dow fell 389.73 points, or 1.5 percent, to 25,897.71. The average was briefly down 462 points.

The Nasdaq composite dropped 95.73, or 1.2 percent, to 7,863.41. The Russell 2000 index of smaller company stocks lost 18.58 points, or 1.2 percent, to 1,494.46.

The major indexes are down more than 3 percent for August. Even after this month’s stumble, they are up solidly this year, led by the Nasdaq with a gain of 18.5 percent. The S&P 500 is up nearly 15 percent, though it’s down 4.7 percent from its all-time high set at the end of July.

Anxiety and fear over the U.s.-china trade war continues to hover over the market and has taken stocks on a wild ride in August.

The S&P 500 index zoomed up and down last week, ending with its second straight weekly loss. The wild swings follow President Donald Trump’s threat to impose more tariffs on Chinese goods, followed by China’s move to allow its currency to weaken.

Trump has promised 10 percent tariffs on some $300 billion in Chinese imports that haven’t already been hit with tariffs of 25 percent. The new tariff would go into effect Sept. 1 and more directly affect U.S. consumers.

Last week, Trump said he’d be “fine” if the U.S. and China don’t go ahead with a meeting next month, dampening investors’ hopes for a path to resolving the economically damaging trade

■ Travels faster than the speed of light or sound.

■ Like a muscle, gets stronger with use and exercise.

What is this awesome power? The answer might surprise you: your imagination.

Always remember that if you can conceive it, you can create a plan, get to work and bring your vision to fruition. Dream up bold and positive opportunities or focus on improving minute details that can bring about impactful changes.

No matter who you are or what you do, your imagination is a special thing that makes you unique. Unlock your imagination and watch yourself soar toward endless possibilities.

“When we recognize that everything in our life was created twice, first as a thought and then as a thing, we begin to recognize the incredible power of the imagination,” according to life coach Pam Sterling.

Let your subconscious mind help you exercise your imagination. Try this technique used by Thomas Edison: Ten minutes before you go to sleep, organize your thoughts. Think about a problem you’re trying to solve or ask your brain a question. Keep thinking about this as you drift off to dreamland.

Then, during the first 10 minutes after waking up, write down whatever pops into your head. You’ll often find that your brain has answered your question during your sleep. In the morning, your mind is looser, and you’re more likely to remember dreams and connect them to your daytime reality.

Even if you don’t think of yourself as the creative type, you can always amp your imagination up with a little effort. Here are some strategies I like to try when I’m searching for an original idea or an innovative solution:

■ Meditate — Spend some time each day visualizing something pleasant and peaceful. It doesn’t have to relate to anything you’re working on; just picture a lake, a forest or even a loved one.

You’ll relax your brain and body while creating a mental environment that makes way for fresh thinking. Another brain stimulator for me is exercise.

■ Pretend — Look at ordinary objects around you and pretend they’re something different. Challenge your mind to look at things from a new perspective. Turn them upside down or sideways and see what they morph into.

■ Try something new — Break out of your routine on a regular basis. Read a book on a subject you’re unfamiliar with, try a new sport, talk to someone you don’t know well. Different experiences can help loosen up stiff ways of thinking about things.

■ Make art — Try sketching a picture or writing a poem. It doesn’t have to be a masterpiece. Give yourself permission to roam in an unconventional direction. You may see and hear the world differently later. Pablo Picasso didn’t listen to critics, and neither should you.

Mackay’s Moral: Anyone who thinks the sky is the limit has limited imagination.