Published: Thu, November 15, 2018
Business | By Eloise Houston

Tech giants slide pulling US stock market sharply lower

Tech giants slide pulling US stock market sharply lower

Goldman Sachs slid 7.5 percent to $206.05.

Elsewhere, tobacco stocks were pressured after The Wall Street Journal reported late Friday that the US Food and Drug Administration was considering a ban on menthol cigarettes.

"I would look at today's downdraft as probably not necessarily the canary in the coal mine for something much worse to come from an economic or market level", he said in an interview.

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The market had anticipated that exports from OPEC member Iran would fall precipitously following the institution of US sanctions in November.

The S&P 500 index fell 46 points, or 1.7 per cent to 2,734. The Dow fell 467 points, or 1.8 per cent, to 25,521. The Nasdaq composite slid 172 points, or 2.3 percent, to 7,234. Bond trading was closed for Veterans Day.

A steep drop in technology companies sent USA stocks sharply lower Monday, knocking off more than 500 points from the Dow Jones Industrial Average.

President Donald Trump blamed his defeat in the midterms for the fall, claiming fears of "Harassment by the Dems" was causing "big headaches!"

Saudi Arabia, the world's largest oil exporter, said on Sunday it would cut its shipments by half a million bpd in December due to seasonal lower demand. The Russell 2000 index of smaller companies gave up 30.70 points, or 2 percent, to 1,518.79.

At the time of writing, the Dow was off 67 points at 25,320, held back by Boeing, Exxon Mobil, Pfizer and Walmart Inc. Micron Technology gave up 4.3 percent to $37.44.

Apple stock plunged 5.04 percent and closed at 193.46 US dollars per share after the main supplier for its Face ID technology, Lumentum Holdings, slashed revenue and profit forecasts, citing reduced orders from a major customer. Banks also took heavy losses. The contract sank 26 cents on Monday to $59.93.

METALS: Gold fell 0.4 percent to $1,203.50 an ounce.

Earlier, a rebound in oil prices had offered some relief to energy stocks, but they succumbed to the broader selling pressure, with the S&P energy index down 1.3 percent.

The Russell 2000 is down 16.72 points, or 1.1 percent.

The S&P 500 also pushed 15 points higher to 2,741, lifted by Advance Auto Parts, Nvidia, Cabot Oil & Gas Corp, Nvidia and American Airlines Group.

SCORCHED: PG&E tumbled 12.9 percent to $34.77 after the electric utility told regulators that a high-voltage line experienced a problem near the origin of one of the major California wildfires before the blaze started.

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