The Wall Street Rally takes technology, Amazon flickers

By Lewis Krauskopf

(Reuters) – Declines in large-technology stocks and the Internet, such as Amazon, pushed the Nasdaq down on Monday, while the strength of financial stocks mitigated the decline of the S & P 500 as investors facing a recent surge in market volatility.

The three major US stock indexes lost their initial strong gains from the beginning of the session.

The main values ​​of technology and growth, such as Amazon The parents of Google Alphabet and Netflix posted sharp declines. The S & P 500 technology sector <.splrct> fell 1.2%.

Investors are wary of any rebound following the rise in volatility that occurred last month, due to rising interest rates and worries about economic and trade tensions. The S & P flirted with the field of correction last week.

"These growth stocks are so overvalued that it's natural to see the air coming out of this balloon. This could continue for a moment," said Stephen Mbadocca, vice president. President of Wedbush Securities in San Francisco.

"But as for the rest of the market that does not have this type of extreme valuations, I think we're probably about to finish the downside," Mbadocca said.

The industrial average of the Dow Jones <.dji> lost 24.469 points, or 0.48%, the S & P 500 <.spx> lost 5.17 points, or 0.19%, to 2653.52 and the Nasdaq Composite <.ixic> lost 81.93 points. 1.14% to 7,085.28.

Investors may be more and more worried about the uncertainty surrounding the US congressional elections, which will take place in a week.

"The most pervasive concern is probably the one that preoccupies mid-term elections," said Kristin Hooper, chief global markets strategist at Invesco. "This is adding to inventory, especially technology, as regulations are raising more and more concerns."

Internet actions could also have been hurt by the British plan to tax online platforms revenue.

Software manufacturer Red Hat Inc offered one of the largest media to the S & P 500, up 45.2% after the company agreed to be acquired by IBM Corp. ] for $ 34 billion. But IBM shares fell by 3.0%, weighing on the Dow Jones and S & P. ​​

Earnings for financial services <.spsy> which rose 1 , 5%, could indicate that so-called value shares are gaining after-loss on growth stocks in the long-standing bull market of the United States.

Investors who are optimistic about stocks report solid corporate earnings this year and the strength of the economy. But there is also concern about the magnitude of the slowdown in earnings growth next year, as weak housing statistics have raised some concerns about the economy.

Data released on Monday shows consumer spending in the United States rose for a seventh consecutive month in September, but earnings recorded its smallest gain in more than a year despite moderate wage growth which suggests that the current pace of spending should not be maintained.

Increasing issues outnumbered declines at the NYSE by a ratio of 1.30: 1; on the Nasdaq, a ratio of 1.02 to one favored the more advanced.

The S & P 500 recorded 3 new highs in 52 weeks and 22 new lows; the Nasdaq composite recorded 22 new highs and 144 new lows.

(Other reports of Sinead Carew in New York and Shreyashi Sanyal in Bengaluru, edited by Susan Thomas and Chizu Nomiyama)

This story was not edited by Firstpost staff and is generated by feed automatic.