Tech losses drag mar­kets down

New Haven Register (New Haven, CT) - - BUSINESS -

U.S. stocks fell amid a fresh round of sell­ing in tech­nol­ogy shares sparked by weak earn­ings, while crude capped its long­est los­ing streak ever on con­cern over a sup­ply glut.

Large-cap tech names dragged the Nas­daq 100 to a loss of more than 1.5 per­cent and trimmed a weekly ad­vance for the S&P 500. Chip­maker Sky­works plunged af­ter re­sults sig­naled a slow­down in smart­phone de­mand. West Texas Intermediate crude capped a 10th straight loss, send­ing small-cap en­ergy shares tum­bling more than 2.5 per­cent. Walt Dis­ney’s strong earn­ings min­i­mized dam­age in the Dow Jones In­dus­trial Av­er­age.

Mex­i­can stocks erased a sec­ond day of losses af­ter the na­tion’s pres­i­dent-elect said he won’t change any bank­ing laws. The peso turned higher. Europe’s main eq­uity gauge dropped af­ter dis­ap­point­ing fore­casts from Richemont and Thyssenkrupp AG. Trea­sury yields edged lower af­ter the Fed­eral Re­serve on Thurs­day re­it­er­ated its plan for “fur­ther grad­ual” rate in­creases.

In­vestors have their eyes open to any signs the eco­nomic cy­cle is peak­ing. While lower oil prices seem mostly driven by a surge in sup­ply, not a drop in de­mand, there are more wor­ri­some signs com­ing out of China. Data there show softer pro­ducer-price gains, weak car sales and a dis­ap­point­ing out­look from a top on­line travel com­pany, help­ing to reignite lin­ger­ing con­cerns about the health of the world’s sec­ond-big­gest econ­omy.

Asian fi­nan­cial shares per­formed par­tic­u­larly poorly fol­low­ing news that Bei­jing plans to set quo­tas for banks to pump credit into pri­vate com­pa­nies. The off­shore yuan held this week’s drop as there was lit­tle sign of an end to the U.S.-China trade war in the wake of the midterm elec­tions.

Else­where, the pound weak­ened amid on­go­ing spec­u­la­tion over a po­ten­tial Brexit deal. Emerg­ing­mar­ket stocks and cur­ren­cies slid.

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