Tech woes, worsening tensions with China sink United States stocks

Apr 04, 2018, 01:48

The Dow Jones industrial average climbed 114 points, or 0.5 percent, to 23,742. Instead of raising money through an initial public offering underwritten by an investment bank, Spotify Technologies took a more unusual route called a direct listing that lets investors sell the stock directly. "China is important, but we trade more with Mexico and Canada", said Hogan of concerns about USA efforts to renegotiate the North American Free Trade Treaty, or NAFTA, with its neighbors.

"The big question is how far the current tremor in the equity market will affect bonds, given it is driven by a single company - even if it is a tech giant having a huge market weight", said DZ Bank strategist Christian Lenk. The S&P 500 index gave up 58.99 points, or 2.2 percent, to 2,581.88. The stock wound up closing down 10.2 per cent at $149.01.

LONDON, April 3 (Reuters) - World share markets struggled to regain their poise on Tuesday, with hopes pinned on a modest Wall Street recovery after both Europe and Asia had fallen on tech and trade war tensions. In recent years, the FAANGs - Facebook Inc., Apple Inc., Inc., Netflix Inc. and Google (controlled by parent Alphabet Inc.) - have produced huge returns for US investors. But Holke, of Wells Fargo, said it's likely the countries will find ways to resolve their differences on issues including complaints that Beijing steals or pressures foreign companies to hand over technology.

The Nasdaq, which set its most recent record on March 12, is down 7.5 per cent in just three weeks.

Shares of US tech giants, including Facebook, Netflix and Google parent Alphabet, all declined overnight in the first trading session of the month, having first sold off in March.

Amazon AMZN.O dropped more than 4 percent after President Donald Trump launched his latest attack over the pricing of the online retailer's deliveries through the US postal system and promised unspecified changes.

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US crude gained 14 cents to $63.15, copper jumped 1.4 percent for its fourth straight gain and spot gold ticked down 0.2 percent to $1,338.08 an ounce. Amazon is being hammered partly because of Trump's constant criticism of the firm.

The president has for days been assailing Amazon, lately focusing on a "scam" contract with the U.S. Postal Service that has actually been judged profitable for the post office. Germany's DAX Index dropped 0.8 percent, the UK's FTSE 100 Index slid 0.4 percent, while France's CAC40 Index declined 0.3 percent. The yield on the 10-year Treasury stayed at 2.74 percent after a sharp decline last week.

Wholesale gasoline dropped 5 cents to $1.97 a gallon.

Japan's Nikkei ended down 0.45 percent, after initially falling as much as 1.6 percent.

U.S. WTI crude oil +0.7% at $63.46/bbl. Silver fell 1.7 per cent to $16.39 an ounce.

The dollar dipped in early trading but rebounded to 106.16 yen from Monday's 105.89 yen. Natural gas slid 5 cents to $2.68 per 1,000 cubic feet. The euro fell to $1.2267 from $1.2300.