Mid-Day Update: Tech Carnage Continues with Wall Street Negative For the Year

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Wall Street’s major market averages are off their session lows but still in the midst of a major sell-off with the technology and energy sector bearing the brunt of investors’ aversion to risk. While there has been healthy bargain-hunting in the semiconductor sector, the Nasdaq opened at its lowest level since April, wiping out all its gains from 2018. The Dow Jones Industrial Average and S&P 500 were also beaten down as concerns over global economic growth, the pace of US rate hikes and uncertainty surrounding the trade war between the US and China continue to weigh.

Apple ( AAPL ) shares weakened after Goldman Sachs. Goldman lowered Apple’s price target and warned that share prices won’t appreciate over the next 12 months given lackluster demand for the iPhone XR in China. The stock price subsequently fell to a six-month low and entered bear market territory.

As a result, investors continued to pour out of technology stocks overnight leaving a sea of red in its wake. Losses were heaviest in Asia where markets had the added burden of trade jitters and pressure on Nissan and Mitsubishi Motors after Chairman Carlos Ghosn was arrested Monday for financial misconduct.

Besides the technology sector, energy shares are also taking a beating with every stock in the S&P 500 energy sector in correction territory. Oversupply issues coupled with the inability of OPEC to initiate production cuts drove down the price of a barrel of brent crude by 5% to its lowest level in nine months. West Texas intermediate was trading at a one-year low.

This morning’s economic data failed to breathe life into equities as the housing market continues to slow in tandem with higher interest rates. Housing starts were up a less-than-expected 1.5% to a seasonally-adjusted annual rate of 1.228 million while new building permits were down 0.6% to a SAAR of 1.263 million.

European bourses were not immune to the global tech rout. EU-zone bourses were all significantly lower led by Germany’s DAX and France’s CAC-40.

Crude oil was down $3.06 to $54.14 per barrel. Natural gas was down $0.20 to $4.50 per 1 million BTU. Gold was down $1.50 to $1,223.70 an ounce, while silver was down $0.08 to $14.32 an ounce. Copper was down $0.02 to $2.77 per pound.

Among energy ETFs, the United States Oil Fund was down 5.35% to $11.49 with the United States Natural Gas Fund down 3.68% to $35.83. Amongst precious-metal funds, the Market Vectors Gold Miners ETF was down 0.24% to 19.34 while SPDR Gold Shares were up 0.02% to $115.69. The iShares Silver Trust was down 0.52% to $13.48.

Here’s where the markets stand at mid-day:


NYSE Composite Index was down 144.42 points (-1.11%) to 12,144.42

Dow Jones Industrial Index was down 374.03 points (-1.50%) to 24,643.41

S&P 500 was down 26.51 points (-0.99%) to 2,663.40

Nasdaq Composite Index was down 55.30 points (-0.75%) to 6,975.83


FTSE 100 was down 52.07 points (-0.76%) to 6,947.92

DAX was down 178.13 points (-1.58%) to 11,066.41

CAC 40 was down 60.56 points (-1.22%) to 4,924.89

Nikkei 225 was down 238.04 points (-1.09%) to 21,583.12

Hang Seng Index was down 531.66 points (-2.02%) to 25,840.34

Shanghai China Composite Index was down 57.66 points (-2.13%) to 2,645.85


NYSE Energy Sector Index was down 250.22 points (-2.34%) to 10,459.75

NYSE Financial Sector Index was down 99.47 points (-1.30%) to 7,529.62

NYSE Healthcare Sector Index was down 36.67 points (-0.23%) to 15,907.90


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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Copyright (C) 2016 MTNewswires.com. All rights reserved. Unauthorized reproduction is strictly prohibited.

Referenced Symbols: AAPL , K

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