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Dow turns lower as industrial stocks drag

Reuters 

By Sruthi Shankar

(Reuters) - The Dow Jones Industrial Average fell about half a percent on Monday as worries about the impact of Donald Trump's decision to impose continued to weigh on industrial stocks including and

Shares of the United States' big manufacturers have been under pressure as Trump's protectionist stance on and aluminium imports could increase costs and hamper sales abroad.

The declines for the Dow comes after a near 2 percent gain for Wall Street on Friday after sluggish wage growth data eased concerns the Federal Reserve might raise interest rates swiftly.

"It is a quiet day in terms of and you still have the tariff fears kind of circling in the markets," said Michael Antonelli, managing director, at Robert W. Baird in

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

The tech-heavy Nasdaq, however, gained around 0.6 percent, helped in part by what traders read as further signs of of Broadcom's $117 billion bid for U.S. graphics chipmaker

The said in a letter to Singapore-based that it had violated its order by not giving sufficient notice to a national security panel about its plans to redomicile in the

"It's ... the government coming out and saying that it is leaning toward not allowing this merger to go through," said Kim Forrest, at in

"This is a real change because under the Republican administration, it is generally thought of as less regulatory and this is the very opposite."

gained 3.6 percent while shares in were flat.

Shares of Micron jumped nearly 10 percent after analysts at Nomura raised their target for the stock to $100, $41 above current rates.

jumped 27 percent after and specialist said it would buy the for $1.7 billion. Lumentum's shares rose 5.6 percent.

Last month, Wall Street saw its worst two weeks in two years as fears of higher wages, inflation and interest rates triggered a selloff that dragged the main indexes into correction territory.

The is just 3 percent below record highs hit on Jan. 26 while the Nasdaq is back to a record. By 13:07 p.m. ET, the was up just 0.02 percent at 2,787.14.

Advancing issues outnumbered decliners on the two major exchanges, by a 1.17-to-1 ratio on the NYSE and a 1.40-to-1 ratio on the Nasdaq.

(Reporting by in Bengaluru; Editing by and Arun Koyyur)

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

First Published: Mon, March 12 2018. 23:28 IST
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