Tech giants slide, pulling USA stock market sharply lower

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A broad sell-off in technology companies pulled USA stocks sharply lower Monday, knocking more than 500 points off the Dow Jones Industrial Average.

TECH TUMBLE: Apple tumbled 4.2 percent to $195.97 after Wells Fargo analysts said the iPhone maker is the unnamed customer that optical communications company Lumentum Holdings said was significantly reducing orders. Banks, consumer-focused companies, and media and communications stocks all took heavy losses.

The S&P 500 index dropped 43 points, or 1.6 per cent, to 2,737 as of 1:07 pm Eastern Time. On Wall Street, the futures for the Standard & Poor's 500 and for the Dow Jones Industrial Average were both up 0.6 percent.

The tech-heavy Nasdaq had fallen furthest, losing 2.4 percent at 7,228.80.

The S&P 500 index fell 46 points, or 1.7 percent to 2,734.

Stocks appeared to have regained their footing after a skid in October snapped a six-month string of gains for the S&P 500. Shares of Amazon and Alphabet decreased 4.41 percent and 2.58 percent, respectively.

Oil prices rose about 1 percent on Monday, breaking a stretch of losses, after Saudi Arabia said OPEC and its partners believed demand was softening enough to warrant an output cut of 1 million barrels per day next year.

Apple Inc, a component of the Dow tumbled almost 4% after Lumentum Holdings Inc (one of its primary suppliers) trimmed its fiscal 2019 second-quarter top and bottom line forecast.

Goldman Sachs shares dropped 7.2 per cent after Bloomberg quoted the Malaysian Finance Minister Lim Guan Eng saying the country was seeking a full refund of all the fees it paid to the Wall Street bank for arranging billions of dollars of deals for troubled state fund 1MDB.

Oil gained as Saudi Arabia signaled it would cut production in December, but rolled over after President Donald Trump tweeted his displeasure.

FILE- In this November 7, 2018, file photo trader Timothy Nick, center, works with specialist Michael O'Mara on the floor of the New York Stock Exchange. Bond trading was closed for Veterans Day.

Athenahealth jumped 9.6 per cent after the struggling medical billing software maker received a buyout offer. Shares of US chipmaker NVIDIA pulled back 6.90 percent.

CURRENCIES: The dollar strengthened to 113.85 yen from 113.80 yen on Friday.

Apple sank 4.8 per cent and Amazon lost 4.5 per cent. Facebook gave up 2.5 per cent and JPMorgan Chase fell 1.8 per cent.

Tech stocks were also weak in Europe as the pan-European STOXX 600 index lost 0.84 per cent. Britain's FTSE 100 shed 0.7 percent. Japan's Nikkei 225 added 0.1 percent, while Hong Kong's Hang Seng rose 0.1 percent.

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