Markets Right Now: Technology stocks lead USA market lower

AP  File		Workers on the floor of the New York Stock Exchange on Nov. 7

AP File Workers on the floor of the New York Stock Exchange on Nov. 7

US stocks closed sharply lower on Monday, as steep losses in Apple shares led the tech rout, dragging the market.

The slide in the sector came as titan Apple Inc (NASDAQ:AAPL) shares fell around 5% during the regular session to $194.17 after supplier Lumentum Holdings Inc (NASDAQ:LITE) slashed its earnings and sales forecast because of weak demand for iPhones. Banks, consumer-focused companies, and media and communications stocks all took heavy losses. 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 fell 602 points, or 2.3 percent, to 25,387.

The Nasdaq composite added 0.01 points to 7,200.87.

The S&P 500 index fell 39 points, or 1.4 per cent to 2,741.

The S&P 500 index fell 39 points, or 1.4 percent to 2,741.

Monday's losses bring the Dow's decline over the past two sessions to 800 points.

The Nasdaq is up 297.48 points, or 4.3 per cent.

Lumentum shares plunged 33.0 percent. Apple slumped 5 percent. Aphria Inc. lost 8.5 per cent, while Aurora Cannabis Inc. and Canopy Growth Corp. fell 4.6 per cent and 2.5 per cent, respectively.

"While the oil price has opened on a solid footing today, the knee-jerk reaction to the meeting is likely to subside in the short term until investors take solace in visible signs of a reduction in supply and OPEC lives up to the rhetoric of further supply cuts", said Aneeka Gupta, associate director at exchange-traded fund provider WisdomTree.

General Electric Co shares fell 6.9% after new chief executive officer Larry Culp said the company was saddled with too much debt and would urgently sell assets to reduce leverage.

Meanwhile, the private-equity firm Veritas Capital and the hedge fund Elliott Management reached an all-cash deal to purchase the USA healthcare software maker Athenahealth for about $5.7 billion, a 12% premium to where shares closed Friday.

A holiday in the USA bond markets for Veterans Day kept trading volume muted.

The price of oil also fell, with Brent Crude, the global benchmark, dropping to under $69 while West Texas Intermediate, the USA measure slipped to under $59.

The dollar strengthened to 113.86 yen from 113.80 yen on Friday. The euro rose to $1.1252 from $1.1218.

MARKETS OVERSEAS: Major stock indexes in Europe declined.

Apple sank 4.8 per cent and Amazon lost 4.5 per cent. Facebook gave up 2.5 per cent and JPMorgan Chase fell 1.8 per cent. Britain's FTSE 100 shed 0.7 percent.

In Asia, stocks were generally mixed with the Nikkei 225 down 459 at 21,810, while the Shanghai Composite Index added around 24 points at 2,654.

Hong Kong's Hang Seng closed the day up 0.1 percent. The Kospi in South Korea dipped 0.3 percent.

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