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(Reuters) – The fall in technology stocks on Monday kept Wall Street under pressure and dragged Nasdaq down, but the S & P 500 and Dow Jones Industrial Average rose modestly as defensive sectors advanced. while traders also evoked technical support.
Apple lost 1.5% and weighs the heaviest weight on the top three indices after Goldman Sachs said that there were many signs of rapid slowdown in consumer demand in China, which could affect demand for iPhones this fall.
The technology index fell 0.8%, the highest among the 11 sectors of the S & P. Defensive indices of real estate and consumer goods surged by about 1.30%, while utilities gained 0.79%.
"It's almost as if a ceasefire had been called on the market between bulls and bears.There is a hesitation to act back and forth at the present time and the best term to describe it is probably "nervous", said Michael Antonelli. General Manager of Institutional Sales Operations at Robert W. Baird in Milwaukee.
Wall Street had a strong sale last week, the worst of its last seven months, due to growing fears over the impact of tariffs and rising borrowing costs on corporate profits. . The third quarter earnings season is in full swing this week.
According to Refinitiv's I / B / E / S data, S & P's earnings growth is expected to have slowed to 21.6% from the previous two quarters. The first report on significant gains this week was also not well received.
Bank of America fell 1.4% after the growth of its lending relative to its rivals, and advisory and bond fees declined in the third quarter.
The rising tension between Western powers and Saudi Arabia following the disappearance of journalist Jamal Khashoggi has also added to nervousness. Saudi Arabia holds stakes in major US companies and also funds the SoftBank Group Vision Fund, the largest technology investment vehicle in the world.
Antonelli also said the S & P was receiving some support from its 200-day moving average, a key indicator of long-term momentum, of 2,766.56 points, which "bulls are trying to defend". The Dow held near its 100-day moving average.
At 13:40 ET, the S & P 500 was up 3.07 points, or 0.11%, to 2,770.20.
The Dow was up 72.45 points, or 0.29%, to 25,412.44, while the Nasdaq Composite was down 17.98 points, or 0.24%, to 7,478.91.
Helping the Dow was the 1.7% increase in Walt Disney. The company offered concessions to ease the Commission's antitrust concerns over its $ 71.3 billion offering for Twenty-First Century Fox's entertainment assets. Fox rose 0.7 percent.
The main winners of the S & P were L3 Technologies (11.9%) and Harris Corp (10.9%), after military communications equipment providers announced a merger of all actions to create the sixth largest US subcontractor of defense.
Increasing issues outnumbered the declining for a ratio of 1.87 to 1 on the NYSE and a ratio of 1.31 to one for the Nasdaq.
The S & P index posted two new highs over 52 weeks and seven new lows, while the Nasdaq recorded 11 new highs and 125 new lows.
(Report by Medha Singh in Bengaluru, edited by Shounak Dasgupta)
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