The Dow closed down 459 points on Monday. The Nasdaq plunged almost 3% and dropped into the red for the year. Heavy selling in tech stocks left the Nasdaq just shy of correction territory, 10% below its all-time closing high.
At one point, the Dow was down as much as 758 points. Market analysts blamed the sell-off on the first day of the second quarter on concerns about trade tensions and President Trump’s attacks on Amazon.
Amazon (biggest drivers of the 2017 market rally, tumbled 5%, wiping out more than $36 billion of its market value.), one of the
Trump once again accused Amazon of taking advantage of the US Postal Service, and he suggested that Amazon does not pay its fair share of tax.
In fact, Amazon pays the same lower rate that the post office charges other bulk shippers, and it collects sales tax in every state that charges it. Amazon does not collect sales tax on purchases made from third-party vendors.
President Trump’s “concerns” over Amazon supposedly ripping off the U.S. Postal Service and not paying enough taxes seem pretty sketchy. In all likelihood they stem from his personal issues with Jeff Bezos who also owns left leaning newspapaer The Washington Post.
The market may be suffering but at least the President’s tweets may be winning him some allies across the aisle.
Trump’s stated reasoning falls more in line with what one might expect from a life long Democrat or even a socialist, not the constitutional conservative that so many pundits insist that Trump is.
Millionaire socialist Senator Bernie Sanders seemed to echo Trump’s concerns.
Jake Tapper: “Do you think Amazon has gotten too big?”
Bernie Sanders: “Yeah, I do” pic.twitter.com/P6DHNR8MNK
— Eric, the first time Avatar watcher (@morroweric) April 1, 2018
On CNN’s “State of the Union” on Sunday, the anchor Jake Tapper asked Sanders whether Amazon had gotten too big.
“Yeah, I do, I do,” said Sanders, the independent senator from Vermont who ran as a Democratic presidential candidate in 2016.
“This is an issue that has got to be looked at,” he added. “What we are seeing all over this country is the decline in retail. We’re seeing this incredibly large company getting involved in almost every area of commerce. And I think it is important to take a look at the power and influence that Amazon has.”
Maybe someone should ask Trump if he also thinks there are too many brands of deodorant.