Tech weakness, trade jitters hit S&P, Nasdaq

The S&P 500 and the Nasdaq dropped today, as internet stocks faltered for a second day. — Reuters pic
The S&P 500 and the Nasdaq dropped today, as internet stocks faltered for a second day. — Reuters pic

NEW YORK, Sept 6 — The S&P 500 and the Nasdaq dropped today, as internet stocks faltered for a second day on concerns about increased regulation, while Micron led a decline in chip stocks.

Declines in technology stocks come after Facebook and Twitter executives defended their companies before skeptical US lawmakers yesterday and the US Department of Justice said it would discuss concerns that social media platforms are “intentionally stifling the free exchange of ideas”.

Facebook fell 2.1 per cent, Twitter dropped 2.1 per cent, Alphabet slipped 2 per cent and Snap was down 2.1 per cent.

Micron Technology dropped 7.6 per cent after brokerage Baird raised concerns over prices of DRAM chips and oversupply of NAND chips.

The Philadelphia SE Semiconductor index fell 1.9 per cent.

Investors were keeping an eye on trade developments, with a public comment period on the Trump administration’s plan for fresh tariffs ending today.

China has warned of retaliation if Washington implements any new tariff measures. Recent reports have said US President Donald Trump is ready to move ahead with tariffs on US$200 billion (RM828 billion) in imports.

Markets also focused on the North American Free Trade Agreement negotiations, which Canadian Foreign Minister Chrystia Freeland said yesterday continued to be “constructive”.

Trade concerns have been a drag on since early this year as investors worry that a global trade war could dent business investment and growth.

Craig Erlam, a senior market analyst at Oanda, wrote in a research note the latest move on China “would represent a significant ramping up of the trade war and show the US electorate ahead of the mid-terms that he (Trump) will not shy away from his strategy, regardless of the warnings against doing so.”

At 10:19am ET the Dow Jones Industrial Average was up 25.69 points, or 0.10 per cent, at 26,000.68, the S&P 500 was down 6.98 points, or 0.24 per cent, at 2,881.62 and the Nasdaq Composite was down 48.52 points, or 0.61 per cent, at 7,946.66.

Seven of the 11 major S&P sectors were higher, led by gains in materials and industrial shares.

Netflix rose 2.3 per cent after RBC raised on the stock and a survey by the brokerage showed higher penetration levels in the United States and United Kingdom.

Advancing issues outnumbered decliners for a 1.13-to-1 ratio on the NYSE. Declining issues outnumbered advancers for a 1.16-to-1 ratio on the Nasdaq.

The S&P index recorded 30 new 52-week highs and 8 new lows, while the Nasdaq recorded 58 new highs and 27 new lows. — Reuters

Source: The Malay Mail Online

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