Tech giants plunge again, pushing market into red for year
By MARLEY JAY, AP Markets Writer
NEW YORK (AP) — Stocks dropped again Tuesday as losses mounted for the world’s largest technology companies. Retailers also fell, and energy companies plunged with oil prices as the market sank back into the red for the year.
Oil prices tumbled another 6.6 percent as Wall Street reacted to rising oil supplies and concerns that global economic growth will slow down, a worry that’s intensified because of the trade tensions between the U.S. and China. U.S. crude has plunged 30 percent since early October.
Technology companies were hit after the Trump administration proposed new national security regulations that could limit exports of high-tech products in fields such as quantum computing, machine learning and artificial intelligence.
Retailers also skidded. Target’s profit disappointed investors as it spends more money to revamp its stores and its website, while Ross Stores, TJX and Kohl’s also fell on disappointing forecasts.
The S&P 500 index lost 48.84 points, or 1.8 percent, to 2,641.89. The Dow Jones Industrial Average sank 551.80 points, or 2.2 percent, to 24,465.64.
The tech-heavy Nasdaq composite lost 119.65 points, or 1.7 percent, to 6,908.82. The Russell 2000 index of smaller-company stocks shed 27.53 points, or 1.8 percent, to 1,469.01.
The Dow Jones Industrial Average has lost 3.7 percent in the last two days, and the S&P 500 is off 3.4 percent. The Nasdaq, heavily populated with technology stocks, is off 4.7 percent. The S&P 500 index has fallen 9.9 percent from the record high it set exactly two months ago.
As the tech giants swoon, investors have lately turned to safer bets such as utilities, real estate companies and makers of household goods. They’ve also sought the safety of U.S. Treasuries.
The price of oil has been falling sharply in recent weeks and is now down 30 percent since October 3.
Saudi Arabia and other countries started producing more oil earlier this year after the Trump administration announced renewed sanctions on Iran, Nixon noted. The administration then granted waivers to several countries allowing them to continue importing Iranian oil, creating a supply glut that pushed prices dramatically lower.
Nixon said OPEC countries will probably cut back on oil production, but some investors are worried that the buildup in crude stockpiles is a sign the global economy isn’t doing as well as expected.
Earnings from retailers didn’t help investors’ mood. Target plunged skidded 10.5 percent to $69.03 after reporting earnings that missed Wall Street’s estimates due to higher expenses. Ross Stores, TJX and Kohl’s also fell on disappointing forecasts.
Tech stocks were among the biggest losers in Europe, too. Nokia and Ericsson, two top suppliers of telecom networks, each fell about 3 percent. European indexes fell, with Germany’s DAX index dropping 1.6 percent and the French CAC 30 falling 1.2 percent. Britain’s FTSE 100 lost 0.8 percent.
Stocks also declined in Asia. Japan’s Nikkei 225 lost 1.1 percent and Hong Kong’s Hang Seng shed 2 percent.
Benchmark U.S. crude closed at $53.43 a barrel in New York, its lowest price in a little more than a year. Brent crude, used to price international oils, fell 6.4 percent to $62.53 per barrel in London.
Student loan servicing company Navient dropped 10.6 percent to $10.73 after The Associated Press reported on an audit by the Department of Education that showed Navient may have driven tens of thousands of borrowers struggling with their debts into higher-cost repayment plans.
Wholesale gasoline fell 5.5 percent to $1.50 a gallon and heating oil skidded 4.6 percent to $1.99 a gallon. Natural gas dipped 3.8 percent to $4.52 per 1,000 cubic feet.
The dollar fell to 112.40 yen from 112.54 yen. The euro fell to $1.1399 from $1.1453.
AP Markets Writer Marley Jay can be reached at http://twitter.com/MarleyJayAP