NEW YORK: Wall Street stocks fell Monday, with the Nasdaq suffering its third straight significant fall on worries of slowing growth in the tech sector.
The tech-rich Nasdaq Composite ended down 1.4 percent at 7,627.77, its third straight decline of at least one percent after the index hit a record on Wednesday.
The Dow Jones Industrial Average dropped 0.6 percent to 25,306.83, while the broad-based S&P 500 also declined 0.6 percent to 2,802.61.
Tech stocks have been in retreat ever since Facebook last week signaled slower growth as it spends more on data security in response to criticism over its privacy policies.
“We realize that these stocks are not going to justify their valuation, so there is a repricing of the Nasdaq to something more reasonable,” said Phil Davis of PSW Investments.
Analysts also fear the tech selloff could weaken the broader market given the size of the sector and its role as a catalyst for other sectors.
Facebook fell again Monday, this time by 2.2 percent, while Google parent Alphabet shed 1.5 percent, Microsoft 2.2 percent and Netflix 5.7 percent. Apple, which reports earnings on Tuesday, lost 0.6 percent.
The news-jammed schedule also includes a two-day Federal Reserve meeting culminating with a policy statement Wednesday and a trove of US economic data concluding with the July jobs report on Friday.
Among other movers, CBS slumped 5.1 percent as the company’s board of directors reportedly weighed a possible removal of Chief Executive Leslie Moonves as the company investigates claims he sexually harassed women.
American Express shed 2.9 percent as it announced it would undertake a review of its international payments practices after a Wall Street Journal report questioned its pricing practices.
Source: Brecorder
