Dow loses more than 500 points as technology and retail stocks fall

NEW YORK (AP) – Stocks fell on Tuesday due to weaker retailer results and growing losses from large tech companies, which plunged the market into the red for the year.

Energy companies were collapsing due to a 7% drop in the price of oil. The crude was on the way to its biggest loss in three years. Industrial firms were also down as the downward trend in inventories continued into the second day.

The Dow Jones Industrial Average Index lost about 550 points, or about 2.2%.

Investors are measuring a number of headwinds and playing more and more cautiously. The global economy is showing signs of weakening as the US, China and Europe are all threatened by a further slowdown, which could hurt the demand for commodities such as oil and gas. oil and threaten corporate profits. Trade tensions between the United States and China seem to be worsening rather than improving, contributing to the liquidation of technology stocks and industrial multinationals.

Faced with these challenges, investors have recently turned to safer bets such as utilities, real estate companies and household goods manufacturers. They also sought the safety of American treasures.

The S & P 500 lost 56 points, or 2.1%, versus 2,634 at 15:05. Eastern Time. The Dow Jones Industrial Average sank 616 points, or 2.5%, to 24,400.

Retailer revenues did not help the mood of investors. The diving target slid 10.2% to 69.27 dollars after announcing a profit below the estimates of Wall Street due to higher spending. Ross Stores, TJX and Kohl's also posted disappointing forecasts.

Technology companies slipped after the Trump administration proposed new national security rules that could limit exports of high-tech products in areas such as quantum computing, machine learning, object recognition, and more. artificial intelligence. This decision further reduces the hope that US President Donald Trump and Chinese President Xi Jinping can reach an agreement to break the trade stalemate of these countries when they meet this month at a meeting of 20 main economies.

"A resolution does not seem to come in the short term," said Katie Nixon, chief investment officer of Northern Trust Wealth Management. "Many leading companies (such as Alphabet, Apple, IBM, etc.) could be significantly limited in the way they export their technology."

Apple fell 4.7% to $ 177.10, 24.2% below the peak of October 3, although it remains higher for the year. Microsoft lost 3.1% to $ 101.33 and IBM lost 2.6% to $ 117.20

Technology stocks have also been among the biggest losers in Europe. Nokia and Ericsson, two of the leading providers of telecommunications networks, each lost about 3%.

The Nasdaq composite, at the cutting edge of technology, lost 147 points, or 2.1%, against 6,881. The Russell 2000 index of small business stocks lost 26 points, or 1.8%, to 1,469.

The benchmark US crude lost 6.6% to 53.43 dollars a barrel in New York. Brent, used for the price of international oil, fell 6.4% to 62.53 dollars a barrel in London. Oil prices have fallen since early October.

Saudi Arabia and other countries began producing more oil after the Trump government announced the renewal of sanctions against Iran, Nixon said. The administration has granted exemptions to several countries allowing them to continue importing Iranian oil, thus creating an overabundance of supply leading to a dramatic fall in prices.

Mr Nixon said the OPEC countries would likely reduce their oil production, but some investors fear that the accumulation of crude stocks is a sign that the global economy is not going away as well as expected.

Bond prices have been stable. The yield on the 10-year Treasury Note remained at 3.06%.

European indices fell, the German DAX index having lost 1.6%. Equities also declined in Asia as the Nikkei 225 lost 1.1% and Hong Kong's Hang Seng lost 2%.

The dollar rose from 112.54 yen to 112.80 yen. The euro rose from 1.1303 dollar to 1.1370 dollar.