Economy

Wall Street closes with heavy losses, Dow Jones down 2.32pc

Wall Street closes with heavy losses, Dow Jones down 2.32pc

Stocks are opening moderately lower on Wall Street, led by declines in technology and internet companies.

Tuesday's moves come after the Dow dropped 602 points on Monday as Apple shares dropped on expectations of slowing iPhone sales.

The technology sector, which has fueled much of the USA stock market's bull run, fell 3.3 per cent, while the Philadelphia SE Semiconductor index dropped 4.4 per cent.

"You always have regulation concern with tech, and with semis, we're hitting a low with the business cycle and that's a big concern". The S&P 500 technology sector index fell 3.5 per cent, and the financial sector index fell 2.0 per cent.

The Dow Jones Industrial Average was off by more than 500 points or roughly two per cent to 25,493 as technology companies like Microsoft, Intel, Cisco and Apple were all sharply lower.

US-CHINA TRADE: Markets in Shanghai and Hong gained after the South China Morning Post reported Chinese President Xi Jinping's top economic adviser, Vice Premier Liu He, might visit Washington ahead of Xi's planned meeting with U.S. President Donald Trump.

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"Tech is definitely weighing (on the market)", said Lindsey Bell, investment strategist at CFRA Research. Banks and consumer-focused companies and media and communications stocks also took heavy losses.

Also, investors were said to be fearful of new tariffs resulting from trade tensions and the Federal Reserve's potential interest rate hike next month.

The materials sector, which includes precious and base metals miners and fertilizer companies, lost 1.8 per cent. The Philadelphia SE Semiconductor index dropped 4.4%.

The Canadian dollar edged higher against a broadly stronger USA dollar on Monday, supported by a bounce in the price of oil, but remained close to the multi-month low touched on Friday.

On the earnings front, the marijuana producer Aurora Cannabis announced a big jump in revenue and profit, but the stock slid 3.4%. Micron Technology lost 4.2 percent to $37.43.

MARKETS OVERSEAS: Major stock indexes in Europe declined. Energy Minister Khalid al-Falih said on Sunday that kingdom would cut production by more than 500,000 barrels per day in December. Shares of United States chipmaker NVIDIA retreated 6.90 per cent. Prior to Monday's increase, crude futures had fallen for 10 straight trading sessions. Crude oil prices fell, erasing early gains and extending a losing streak to 11 days.