By Medha Singh
(Reuters) – Wall Street fell to a fourth day on Monday and sent it to an eight-month low, where banks, energy and health stocks lost growing concerns about global growth, the US-China trade war and uncertainty about Brexit.
But S & P and Dow Industrials, who have already lost all their winnings for the year in a 4.5 percent slide last week, came out of their session low. Spraying came as Apple's shares sharply reduced their losses, which also helped Nasdaq reverse course and after some gains.
Markets have been linked to signs of global growth, concerns about interest rates and concerns that escalating tensions between the US and China could scuttle a fragile trade truce.
"You have political tensions with China, the possibility of slowing global growth and other geopolitical tensions that still weigh on the markets," says Charlie Ripley, senior investment strategist for Allianz (DE 🙂 Investment Management in Minneapolis.
Eight of the 11 major S & P sectors were lower. The biggest draw was a decline of 1.85 percent in finances, as US tax returns fell further to concerns about trade disputes between the US and China and the Brexit turmoil. [US/]
The British Prime Minister Theresa May said she delayed a planned vote in Parliament on her Brexit agreement, as it would be rejected "with a significant margin".
The price-sensitive bank shares fell 2.56 percent on concerns that Brexit could hamper global growth, giving the Federal Reserve more reason to accelerate interest rate hikes.
"If Fed lowers, it means that the economic activity is below normal, which can adversely affect earnings," says Paul Nolte, portfolio manager at Kingsview Asset Management in Chicago.
Apple Inc. (NASDAQ 🙂 was acting a little higher after losing its losses after Qualcomm (NASDAQ 🙂 Inc. said it had won an initial order from a Chinese court banning the import and sale of several iPhone models in China due to of patent infringement.
Qualcomm rose 1.9 percent, and along with Apple and Microsoft Corp. (NASDAQ :), helped push the technology index 0.51 percent higher.
At 13:23 ET, down 172.18 points or 0.71 percent at 24.216.77, the S & P 500 was down 14.22 points or 0.54 percent at 2,618.86, and it was up 4.75 points or 0.07 percent at 6.974.00.
The small cap, which is less sensitive than its larger comrades to global concerns like trade, fell 0.61 percent and was 18.3 percent below its record close high on 31st August.
The health index, which is the best possible S & P sector this year, fell 0.65 percent. Energy stocks recalled 2.38 percent, mostly among the 11 S & P sectors, as oil prices fell. [O/R]
Falling problems exceed promoters for a 3.12 to 1 ratio on NYSE and a 1.92 to 1 ratio on Nasdaq.
The S & P index recorded no new 52-week highs and 90 new downturns, while Nasdaq registered four new heights and 343 new downturns.