Tech giants slide, pulling USA stock market sharply lower

Fredrick Soto
November 16, 2018

The Nasdaq Composite index fell about 2.5 per cent on Monday, hit by a slump in Apple Inc shares after two suppliers cut their forecasts, sparking a selloff in other iPhone component makers and weighing on technology stocks in general. Banks also took heavy losses. The Nasdaq shed 206 points and the S&P 500 lost over 54 points. The Dow Jones Industrial Average fell about 200 points with shares in tech companies bearing the brunt of the early damage. The Nasdaq Composite closed just along the flatline at 7,200.87.

The S&P 500 index fell 46 points, or 1.7 percent to 2,734. The Standard & Poor's 500 technology sector, a major driver of the long bull run in stocks, fell 3 percent.

A steep drop in technology companies sent US stocks sharply lower, knocking off more than 400 points from the Dow Jones Industrial Average.

Shares were down 4.7 percent.

Earlier, a rebound in oil prices had offered some relief to energy stocks, but they succumbed to the broader selling pressure, with the S&P energy index down 1.3 percent.

US-CHINA TRADE: Markets in Shanghai and Hong gained after the South China Morning Post newspaper reported Chinese President Xi Jinping's top economic adviser, Vice Premier Liu He, might visit Washington ahead of Xi's planned meeting with U.S. President Donald Trump.

The S&P 500 is up 48.57 points, or 1.8 percent.

With Monday's losses, all three indexes erased the gains from their brief rally after the United States congressional elections on 6 November.

In Europe, London's FTSE traded lower by 0.2 percent, Germany's DAX was lower by 0.9 percent and France's CAC declined 0.3 percent. Apple, Amazon, Goldman Sachs and other big names fell. The two sides have raised tariffs on billions of dollars of each other's goods in a dispute over USA complaints about Beijing's technology policy. The fall in prices comes despite OPEC agreeing on the need to cut Oil supply by around 1 million barrels per day from October's level to prevent oversupplying the market.

The price of oil also fell, with Brent Crude, the global benchmark, dropping to under $69 while West Texas Intermediate, the USA measure slipped to under $59.

ENERGY: Benchmark U.S. crude fell $1.26 to $58.67 per barrel in electronic trading on the New York Mercantile Exchange. Trump's Tweet on Monday, "Hopefully, Saudi Arabia and OPEC will not be cutting Oil production".

The dollar strengthened to 113.86 yen from 113.80 yen on Friday.

JAPAN ECONOMY: The Japanese economy shrank at an annualized rate of 1.2 per cent in July-September, as consumer spending and investment fell, according to government data.

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