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Wall Street edges lower, led by technology and financial stocks

The Nasdaq Composite edged up 0.64 points, or 0.01% to 6,217.16

Reuters 

Photo: Reuters
Photo: Reuters

edged lower in late morning trading on Monday, led by technology and financial stocks, with caution prevailing amid concerns over the recent turmoil in the and simmering tensions between the United States and

Last week, President Donald Trump fired chief strategist Steve Bannon and disbanded some business councils, among other political maneuvers, that led to investor concerns about the Trump administration's ability to implement its pro-growth agenda.

While the benchmark S&P 500 index is still up about 13.5 per cent since the election, it had fallen 2.1 per cent in the last two weeks. That's the most since the fortnight before the election.

Part of the recent decline was due to escalating tensions between the United States and While that has eased slightly in the past few days, South Korean and U.S. forces began computer-simulated military exercises on Monday.

"I think (the market's decline) is a continuation of the weakness we've seen in the last couple of weeks," said Paul Nolte, portfolio manager at Kingsview Asset Management in Chicago.

"We have come off a really strong period for the market and are really just digesting the gains."

At 11:00 a.m. ET (1500 GMT), the Dow Jones Industrial Average was down 22.4 points, or 0.1 per cent, at 21,652.11 and the S&P 500 was down 1.79 points, or 0.07 per cent, at 2,423.76. The Composite was down 24.30 points, or 0.39 per cent, at 6,192.23.

The Dow's drop pulled it below its 50-day moving average, meaning that all three indexes were trading below the key technical measure on the same day for the first time since April 18.

Three of the 11 S&P sectors were lower, led by the technology index's 0.63 per cent decline and financial's 0.53 per cent drop.

Defensive sectors such as real estate and telecommunications were the top gainers.

Apple's 0.6 per cent drop weighed the most on the S&P and the Nasdaq, while Nike's 2.62 per cent slide dragged the most on the Dow. Jefferies cut its rating and price target on Nike.

Oil prices fell sharply as a rally at the end of last week prompted investors to close positions at a higher price.

Herbalife was up 10.88 per cent after the nutritional supplement maker said it would buy back $600 million of shares after ending talks to be taken private.

Declining issues outnumbered advancers on the NYSE by 1,448 to 1,260. On the Nasdaq, 1,736 issues fell and 947 advanced.

First Published: Mon, August 21 2017. 21:44 IST
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