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Dow, S&P weighed down by tariffs while tech boosts Nasdaq

Reuters  |  NEW YORK 

By April Joyner

NEW YORK (Reuters) - The and the slumped on Monday as the U.S. tariffs signed into by weighed on industrials, though gains in tech stocks boosted the

Shares of companies such as , down 2.9 percent, and , down 2.4 percent, have been under pressure as Trump's protectionist stance on and aluminium imports could increase costs and hamper sales abroad. Boeing and Caterpillar were the biggest decliners on the Dow.

Trump last week softened his stance on tariffs by exempting and Mexico, and negotiations were ongoing as the and also seek exemptions.

"The big multinational, industrial companies of the world are all taking a hit on the concern that they will be the targets of reprisal sanctions," said Robert Phipps, a at Per in

Concerns about possible fallout from the tariffs largely supplanted optimism, based upon the modest wage growth numbers from Friday's employment report, that the Federal Reserve would stick to its projected three interest-rate increases in 2018.

Still, those numbers indicate a positive outlook for stocks despite today's losses, said Anwiti Bahuguna, a at Columbia in

"We've seen stable, modest wage growth, nothing that should be considered harmful for equity markets," she said.

"Growth stocks are doing well. It's pretty much a continuation of last year's rally, whereas the Dow has all sorts of other companies that may not be growth-oriented."

The <.DJI> fell 157.13 points, or 0.62 percent, to 25,178.61, the <.SPX> lost 3.55 points, or 0.13 percent, to 2,783.02 and the Composite <.IXIC> added 27.52 points, or 0.36 percent, to 7,588.33.

Even with the session's losses, the is just 3.1 percent below record highs hit on Jan. 26, while the <.IXIC> has recovered its losses from last month's sell-off.

The tech-heavy Nasdaq was lifted in part by further signs of of Broadcom Ltd's $117 billion bid for U.S. graphics chipmaker Inc .

The said in a letter to Singapore-based Broadcom that it had confirmed national security concerns about the bid and that the company had not given sufficient notice of its plans to redomicile in the

Broadcom gained 3.6 percent while shares in were flat.

Shares of rose 8.8 percent to $59.37 after analysts at Nomura raised their target for the stock to $100.

jumped 27.5 percent after and specialist said it would buy the for $1.7 billion. Lumentum's shares rose 4.4 percent.

Advancing issues outnumbered declining ones on the NYSE by a 1.22-to-1 ratio; on Nasdaq, a 1.45-to-1 ratio favoured advancers.

The S&P 500 posted 61 new 52-week highs and no new lows; the recorded 211 new highs and 24 new lows.

Volume on U.S. exchanges was 6.52 billion shares, compared to the 7.2 billion average for the full session over the last 20 trading days.

(Additional reporting by in Bengaluru; Editing by and Cynthia Osterman)

(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

First Published: Tue, March 13 2018. 02:11 IST