NEW YORK, March 25 — Wall Street’s main indexes fell today, dragged down by declines in high-growth technology shares, as fears of a global slowdown roiled the market for the second straight session.
On Friday, weak factory data from the United States, Europe and Japan resulted in the main indexes posting their biggest one-day percentage declines since January 3, and also led to the inversion of US Treasury yield curve for the first time since 2007.
Yields on US 10-year treasury yields modestly rose on Monday after data showed German business morale improved unexpectedly in March, but spreads between US three-month and 10-year Treasury yields moved closer again to inversion.
An inverted yield curve is widely seen as a leading indicator of recession.
“Markets are not overcoming concerns of the global economic climate and the fact that the 3-month treasury yields rose above that of the 10-year notes, creating an inversion,” said Robert Pavlik, chief investment strategist and senior portfolio manager at SlateStone Wealth LLC in New York.
“The concerns of global growth, without a China-US trade deal, will linger in the background and continue to weigh on markets.”
Top US officials travel to Beijing for the latest round of high-level talks, which are scheduled to start on March 28.
The technology sector dropped 0.81 per cent, weighing the most among the 11 major S&P sectors.
Apple Inc’s shares fell 1.6 per cent ahead of an event where the company is widely expected to launch its video streaming service. The event is scheduled to start at 1 pm ET.
Interest rate-sensitive financials fell 0.50 per cent.
Investors largely shrugged off Special Counsel Robert Mueller’s report that President Donald Trump’s campaign did not collude with Russia, despite S&P 500 futures initially rising on Sunday. The report left unresolved the issue of whether Trump obstructed justice by undermining the investigations that have dogged his presidency.
At 10:11 am ET, the Dow Jones Industrial Average was down 103.92 points, or 0.41 per cent, at 25,398.40, the S&P 500 was down 11.84 points, or 0.42 per cent, at 2,788.87 and the Nasdaq Composite was down 48.60 points, or 0.64 per cent, at 7,594.07.
Boeing Co rose 1.1 per cent, helping keep the industrials sector afloat.
The planemaker said it will brief pilots and regulators this week on software and training updates for its 737 MAX aircraft, with Ethiopian Airlines and Qatar Airways expressing confidence in the company despite a recent crash.
Akamai Technologies fell 4.6 per cent, the most on the S&P, after a report brokerage Deutsche Bank had downgraded the stock to “sell” from “hold”.
Viacom Inc’s shares rose 5.2 per cent, the most on the S&P, after the company renewed a contract with AT&T Inc to continue carrying its services.
Declining issues outnumbered advancers for a 2.43-to-1 ratio on the NYSE and for a 2.57-to-1 ratio on the Nasdaq.
The S&P index recorded no new 52-week high and three new lows, while the Nasdaq recorded eight new highs and 67 new lows. — Reuters
