Tech firms lead slide as trade worries weigh on U.S. stocks

Associated Press

A slide in technology companies helped pull U.S. stocks lower Monday, snapping a five-day winning streak for the market.

The sell-off came amid speculation that the Trump administration was preparing to impose tariffs on another $200 billion worth of Chinese goods. The two governments have already imposed 25 percent tariffs on $50 billion of each other’s goods, and another round of tariffs would represent a significant escalation in the trade dispute between the world’s two largest economies.

Investors used the prospect of a deeper U.S.-China trade conflict to take some profits, especially in technology stocks, the market’s biggest gainers this year. Department stores and other consumerfocused companies also accounted for a big slice of the losses. Safeplay sectors like real estate and utilities rose. Oil prices fell, erasing early gains.

The S&P 500 index fell 16.18 points, or 0.6 percent, to 2,888.80. The Dow Jones Industrial Average lost 92.55 points, or 0.4 percent, to 26,062.12.

The tech-heavy Nasdaq composite gave up 114.25 points, or 1.4 percent, to 7,895.79. The Russell 2000 index of smaller companies fell 18.17 points, or 1.1 percent, to 1,703.55. Most stocks closed lower on the New York Stock Exchange.

The U.S. has been locked in an escalating trade dispute with China, its biggest trading partner. Washington contends that Beijing uses predatory tactics to acquire technology know-how in an effort to overtake America’s global supremacy in technology.

Over the weekend, news reports indicated that the White House was set to announce tariffs on $200 billion more in Chinese imports as soon as Monday. Beijing has said it would swiftly retaliate against additional U.S. tariffs.

The uncertainty over the trade dispute has at times roiled the market, but not derailed it from notching gains on the strength of strong corporate earnings and a growing U.S. economy. That suggests that many investors, for now, expect both sides will ultimately work out a deal.

“It’s a short-term, immediateterm thorn in the market’s side,” said Ted Theodore, chief investment officer of TrimTabs Asset Management. “A big part of it is not knowing what the game plan is.”

Technology companies led the market’s slide. Apple lost 2.7 percent to $217.88, while Netflix slumped 3.9 percent to $350.35. Twitter fell 4.2 percent to $28.86