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The Dow Jones Industrial Average and S&P 500 wiped out gains from 2018 on Tuesday and fell below their Jan. 1 levels. The S&P closed down 49 points, or 1.8 percent, while the Dow Jones fell 551 points down, about a 2.2 percent drop.

The biggest tech stocks, Facebook, Amazon, Apple, Netflix and Google, have collectively lost $1 trillion in value since their market peaks earlier this year.   And many experts think it is bound to get worse.

CNBC took a survey of chief financial officers Tuesday.  Most expect the Dow Industrials to drop an additional 2,000 points before the markets turn upward.

After the Trump tax law went into effect, the markets took off to new highs, but then investors hit the brakes after rising interest rates and overinflated asset prices became a concern.

One CNBC commentator said Tuesday, “Investors may be better off getting out of the market.”

President Trump’s unresolved trade war is also troubling investors, as tariffs remain in place on steel and aluminum and $250 billion worth of Chinese imports. Close U.S. trade partners such as the E.U. have imposed their own counter-measures, putting American exporters at a disadvantage, reports CNBC.

Recent surveys of economists show that a majority expect the economy to retreat into recession in the coming two years, a potential problem for President Trump as he seeks reelection in 2020.

 

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