Tech Firms Lead Slide as Trade Worries Weigh on U.S. Stocks

(AP) -
The New York Stock Exchange

A slide in technology companies led U.S. stocks lower Monday afternoon amid speculation that the Trump administration is preparing to impose tariffs on another $200 billion-worth of Chinese goods. Retailers and banks also declined, outweighing gains in industrial companies and elsewhere. Oil prices declined, erasing early gains.

KEEPING SCORE: The S&P 500 index fell 9 points, or 0.3 percent, to 2,895 as of 1 p.m. Eastern Time. The Dow Jones Industrial Average dropped 34 points, or 0.1 percent, to 26,120. The Nasdaq composite fell 69 points, or 0.9 percent, to 7,940. The Russell 2000 index of smaller companies decreased 13 points, or 0.8 percent, to 1,708.

TARIFF JITTERS: The U.S. and China have imposed import taxes on $50 billion worth of each other’s products in a rumble over American allegations that Beijing uses predatory tactics to acquire technology know-how in an effort to overtake America’s global supremacy in tech. Over the weekend, news reports indicated that the White House was set to announce tariffs on $200 billion more in Chinese imports as soon as Monday. That would significantly escalate the trade war between the world’s two largest economies.

DATA PROBE: fell 2 percent to $1,930.59 after The Wall Street Journal reported that the online retail giant is investigating suspected bribes and data leaks of its employees.

SHOPPED OUT: Several big department store chains slumped. Macy’s slid 2.9 percent to $35.22. Kohl’s fell 1.8 percent to $79.42. Gap gave up 1.6 percent to $27.33.

TWEET THIS: Shares in Twitter fell 3.7 percent to $29 after an analyst cut the price target on the social media company.

TAKING OFF: Airlines and other industrial sector stocks posted solid gains as the dollar weakened. American Airlines Group rose 1.8 percent to $40.47, while Caterpillar gained 1.5 percent to $147.03.

RELIEVED: Teva Pharmaceutical climbed 4.2 percent to $23.80 after U.S. regulators approved the drugmaker’s preventative migraine treatment.

ENERGY: Oil prices headed lower, wiping out gains from earlier in the day. Benchmark U.S. crude slid 0.6 percent to $68.56 a barrel in New York. Brent crude, used to price international oils, fell 0.4 percent to $77.80 a barrel in London.

BOND YIELDS: Bond prices were little changed. The yield on the 10-year Treasury held steady at 2.99 percent.

CURRENCIES: The dollar fell to 112.02 yen from 112.03 yen on Friday. The euro strengthened to $1.1688 from $1.1632.

MARKETS OVERSEAS: In Europe, the DAX in Germany dropped 0.2 percent, while France’s CAC 40 lost 0.1 percent. Britain’s FTSE 100 was flat. Major indexes in Asia closed mostly lower. South Korea’s Kospi fell 0.7 percent and Hong Kong’s Hang Seng index tumbled 1.3 percent. Australia’s S&P/ASX 200 rose 0.3 percent. Japanese markets were closed for a national holiday.