The three major U.S. stock indices all fell. What is the reason?

The three major U.S. stock indexes opened lower, with the Dow Jones Industrial Average opening 200 points lower and the Nasdaq falling more than 1%. On the market, chip stocks fell, with Intel down 2.12%, Qualcomm down 4.67%, NXP Semiconductors down 2.53%, Micron Technology down 3.2%, and Nvidia down 2%. In terms of individual stocks, Tesla fell below the $200 mark, with a drop of 5.62%, and its stock price hit a new low since December 2016.

Prior to this, affected by the global trade situation, the decline of European stock markets also widened further, with the German DAX index falling by 1.46%. In addition to the German index, the Italian FTSE index fell by 2.40%, the British FTSE 100 index, the Spanish IBEX35 index fell by more than 1%, and the French CAC40 index fell by more than 1.5%.

In the German stock market, only 5 of the 30 constituent stocks recorded gains, while 25 fell. Among them, the two major heavyweight stocks BASF (weighting 8%) and Bayer (weighting 8.5%) both fell by more than 2%, and the financial stock Deutsche Bank fell by more than 3%. In addition, chip manufacturer Infineon fell nearly 6%.

It is worth noting that the S&P 500 futures have always been considered a leading indicator of the DAX30 index, and data shows that the S&P 500 futures have fallen by 0.5%, while the Nasdaq futures and the Dow futures have fallen by 1% and 0.45% respectively. Some analysts believe that if the S&P 500 futures continue to fall, it may indicate that the German stock market may still fall further, which will in turn affect the trend of the DAX futures.

According to the schedule, German Economy Minister Peter Altmaier will deliver a speech on Germany's industrial strategy at 19:30 on Monday. Investors need to pay attention to his interpretation of the German and European economies.

On the other hand, German President Steinmeier has said that Brexit will put Europe's prosperity in danger. In the latest news on Brexit, a spokesman for British Prime Minister Theresa May said on Monday evening that the British cabinet will consider the benefits of holding an indicative vote on Brexit on Tuesday, and Theresa May has also made clear her thoughts on a second referendum.