US tech stocks slump again on world growth worries, Dow rises

579

The tech-heavy Nasdaq has fallen for the third straight day as a sell-off in Chinese markets sparked concerns about slowing global economic growth, though the S&P 500 pared losses to end nearly flat.

Beijing announced a steep cut in the level of cash that banks must hold as reserves, aimed at lowering financing costs and spurring growth amid the trade spat.

In Monday’s session, the first trading session for mainland China investors since new US and Chinese tariffs went into effect, both Chinese stocks and the yuan slid.

The possibility of tapering global growth, led by China’s slowdown, spurred a retreat from the high-flying tech sector , which declined 1.2 per cent.

Among the biggest drags on both the Nasdaq and the S&P 500 were Microsoft Corp, down 1.1 per cent, and Adobe Systems Inc, down 3.2 per cent.

By contrast, defensive sectors, including utilities , consumer staples, and real estate, led the S&P’s major sectors in per centage gains.

The Dow Jones Industrial Average rose 39.73 points, or 0.15 per cent, to 26,486.78, the S&P 500 lost 1.14 points, or 0.04 per cent, to 2,884.43 and the Nasdaq Composite dropped 52.50 points, or 0.67 per cent, to 7,735.95.

The US bond market was closed for the Columbus Day holiday.

Shares of Google parent Alphabet Inc were pressured after Google announced that data from up to 500,000 users of its social network Google+ may have been exposed to external developers.

The company said it would shut down the consumer version of Google+. Alphabet shares ended one per cent lower.

General Electric Co shares rose for the sixth day in a row after the company said it plans to sell $US1 billion in energy investments to Apollo Global Management LLC.

GE shares ended the session up 3.3 per cent.

Declining issues outnumbered advancing ones on the NYSE by a 1.06-to-1 ratio; on Nasdaq, a 1.45-to-1 ratio favored decliners.

The S&P 500 posted eight new 52-week highs and 23 new lows; the Nasdaq Composite recorded 17 new highs and 138 new lows.

Volume on U.S. exchanges was 6.93 billion shares, compared with the 7.22 billion-share average over the last 20 trading days.

With AAP

Contributors to this article may own shares in some of the companies mentioned in this article. The Capital Club has a thorough disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.
Avatar
Lauren Surplice is a keen follower of the stock market, investing in individual companies and funds. She follows the daily stock market news, covering the ASX stocks that are moving the markets. You can contact Lauren at laurens@thecapitalclub.com.au