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A broad sell in technology companies led to a sharp drop in US stocks on Monday, causing the Dow Jones Industrial Average to lose more than 600 points.
The wave of snares sales of big names, such as Apple, Amazon and Goldman Sachs. Banks, consumer-driven businesses and media and communications values have all suffered heavy losses. Crude oil prices fell, wiping out initial gains and extending the 11-day losing period.
The drop in technology stock came as a result of an analyst report suggesting Apple to drastically reduce orders from one of its suppliers. This weighed on the chip makers.
"With the announcement of the Apple supplier this morning, the market is questioning the growth trajectory to 2019," said Lindsey Bell, investment strategist at CFRA. "We continue to like the technology to start next year, but we think the band may have a tough time as we continue in the last two months of the year."
The market slide came after two weeks of consecutive wins.
The S & P 500 index lost 54.79 points, or 2%, to 2,726.22. The Dow dropped 602.12 points, or 2.3%, to 25,387.18. He was briefly down 648 points.
The Nasdaq composite slipped 206.03 points, or 2.8%, to 7,200.87. The Russell 2000 Small Business Index dropped 30.70 points, or 2%, to 1,518.79.
Bond trading was closed for Veterans Day. Inventories in Europe also suffered losses.
Apple fell 5% to $ 194.17 after Wells Fargo analysts said the iPhone maker was the anonymous customer that the optical communications company Lumentum Holdings said was drastically reducing orders. Lumentum shares plunged 33% to $ 37.50.
Several chip makers have also fallen. Advanced Micro Devices sold 9.5% to 19.03 dollars, while Nvidia lost 7.8% to 189.54 dollars. Micron Technology sold 4.3% to $ 37.44.
Amazon slipped 4.4% to $ 1,636.85.
Banks and other financial companies also suffered heavy losses on Tuesday. Goldman Sachs slipped 7.5% to $ 206.05.
"The expectations are really that the process of deregulation that has benefited banks so far is being slowed down by the Democrats in charge," Bell said.
Equities appear to have recovered after a slump in October, which resulted in a six-month gain for the S & P 500. Stocks rebounded last week after the mid-term US elections were largely carried out as planned by the investors. the next two years.
While the market has generally flourished in times of government division, investors continue to face the uncertainty surrounding the US-China trade dispute and the potential impact of increased Corporate America oversight. by the Democrats, who will assume leadership in the House of Representatives in June. January.
In addition, some companies recently announced third-quarter earnings and outlooks that fueled investor concerns about future corporate earnings growth.
While companies this year benefited from lower tax rates set by President Donald Trump and the GOP last December, several companies have recently warned of the impact of rising costs at rates and rising interest rates.
"The bull market is not over, the economic expansion is not over, but the situation is starting to falter," said Randy Frederick, vice president of trading and derivatives at Charles Schwab . "We are clearly entering the final innings of the ball game."
British American Tobacco, which manufactures Newport cigarettes, plunged 38.8% to 38.08 dollars, according to reports that the regulators planned to ban menthol cigarettes.
PG & E dropped 17.4% to 32.98 USD after the utility informed regulators that a high-voltage line had a problem close to the origin of one of the most important California wildfires before the start of the fire.
Investors bought shares in Athenahealth after the troubled medical billing software company announced a $ 5.7 billion takeover bid. The stock jumped 9.7% to $ 131.97.
To date, approximately 90% of the S & P 500 companies have announced their third quarter results, and 51% of these companies have earnings and earnings higher than predicted by Wall Street, according to S & P Global Market Intelligence . Several major retailers are expected to produce results this week, including Walmart, Home Depot, Williams-Sonoma, Nordstrom and J.C. Penney.
"It could actually stimulate the market," said Bell. "Retailers will have a better third quarter than most people expect.Many of them have ordered goods before setting up rates, so they will not have to pass the prices over." consumers during the holiday season. "
The benchmark US crude yielded an anticipated gain, slipping 0.4% to $ 59.93 per barrel in New York. Brent crude, used for the price of international oil, plunged 0.1% to close at 70.12 dollars a barrel in London. Oil futures rose earlier with the announcement of reduced output by Saudi Arabia and other major producers.
The dollar strengthened at 113.86 yen from 113.80 yen on Friday. The euro rose from 1.1333 dollar to 1.1240 dollar. The pound sterling is weakening to rise from 1.2975 USD to 1.2853 USD, while the British government was struggling to find unity under a Brexit deal.
Gold fell 0.4% to $ 1,203.50 an ounce. Silver lost 0.9% to 14.01 dollars an ounce. Copper slipped 0.3% to $ 2.68 a pound.
In other energy trading, fuel oil fell 0.8% to 2.16 dollars a gallon and the wholesale price of gasoline, from 0.9% to 1.64 dollars a gallon . Natural gas increased 1.9% to $ 3.79 per 1,000 cubic feet.
Major stock indexes in Europe also ended lower on Monday. The German DAX lost 1.8% and the French CAC 40, 0.9%. The British FTSE 100 lost 0.7%.
In Asia, the markets have ended mixed. Japanese Nikkei 225 added 0.1%, while Hong Kong's Hang Seng gained 0.1%. The Australian S & P-ASX 200 gained 0.3%. Kospi in South Korea plunged 0.3%.
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