Home Market Wall Street lower as industrials, tech fall on trade woes

Wall Street lower as industrials, tech fall on trade woes


US stock indexes fell on Monday, with industrial and technology shares bearing the brunt of the latest round of U.S.-China tariffs as neither country showed signs of backing down from a protracted trade war.

Nine of the 11 major S&P sectors, including the rebranded and bigger "communications services" sector, were lower as U.S. tariffs on some $200 billion worth of Chinese goods took effect, along with Beijing's retaliatory duties.

The latest list of Chinese goods subject to tariffs includes many technology products. While the new duties spared many high-profile consumer technology items such as "smart" watches and speakers, less flashy home modems and routers were not so lucky.

The technology sector dropped 0.17 percent, weighing the most on the market. Industrial stocks fell 1.09 percent, with Boeing, the biggest U.S. exporter to China, shedding 0.6 percent.

"One of the bigger risks with these tariffs going into effect is that the United States may be pushed out of the Chinese market and it is a growing market," said Scott Brown, chief economist at Raymond James in St. Petersburg, Florida.

At 10:09 a.m. ET the Dow Jones Industrial Average was down 112.23 points, or 0.42 percent, at 26,631.27, the S&P 500 was down 8.28 points, or 0.28 percent, at 2,921.39 and the Nasdaq Composite was down 18.45 points, or 0.23 percent, at 7,968.51.

The CBOE Global Markets volatility index, known as Wall Street's "fear gauge", rose 6.08 percent as the S&P 500 sector shuffle took effect.

The communications services index, an expanded version of the old telecoms sector, dropped 0.36 percent in its debut.

Its new components, Facebook Inc, Twitter and Alphabet, were flat to lower on renewed fears of higher regulation after a report said the White House has drafted a preliminary order to direct federal agencies to probe the business practices of social media and internet firms.

The biggest drag, though, was Comcast, which slid 8.0 percent after it won an auction for Sky Plc, ending a battle with Twenty-First Century Fox and Walt Disney . Fox and Disney were up 0.6 percent and 2 percent, respectively.

The energy sector rose 1.77 percent, the most among the 11 major sectors, as oil prices jumped after OPEC rebuffed calls by U.S. President Donald Trump to raise supply.

Exxon Mobil gained 2.1 percent and Chevron 1.2 percent, and, along with Disney, were the top three gainers on the Dow.

Symantec rose 4.4 percent after the Norton anti-virus maker said it would not restate previous results, except for a $13 million transaction, after a four-month long probe into its accounting practices.

Alexion Pharma jumped 3.8 percent after its drug, Soliris, being tested to treat a rare central nervous system disorder, met the main goal of the study.

Declining issues outnumbered advancers for a 1.58-to-1 ratio on the NYSE and a 1.25-to-1 ratio on the Nasdaq.

The S&P index recorded 14 new 52-week highs and two new lows, while the Nasdaq recorded 28 new highs and 17 new lows.

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