US stocks drop as tech shares fall again

US stocks drop as tech shares fall again

NYSE Jun13
Traders work on the floor of the New York Stock Exchange. (AP Photo/Richard Drew)

NEW YORK: Wall Street stocks retreated on Monday (Jun 12), with high-flying technology giants like Apple and Netflix suffering another bruising session that analysts attributed to profit taking.

Apple fell 2.5 per cent, Amazon 1.4 per cent and Netflix 4.2 per cent. All three companies also fell sharply on Friday in a sudden lurch with no obvious catalysts that dragged the Nasdaq down from records.

The tech-rich Nasdaq Composite Index dropped 32.45 points (0.52 per cent) to end Monday's session at 6,175.46.

The Dow Jones Industrial Average lost 36.30 points (0.17 per cent) to close at 21,235.67, while the S&P 500 shed 2.38 points (0.10 per cent) to 2,429.39.

Energy shares again posted modest advances, after scoring strong gains on Friday. Other sectors, such as financials and consumer stocks, avoided big moves.

Analysts have questioned whether the slump in technology shares is merely a case of profit taking or if it is a harbinger of a broad-based market pullback after all three indices hit records last week.

Trading in the broader market has been choppy. Key catalysts this week include the Federal Reserve's policy decision on Wednesday expected to result in an interest rate increase.

General Electric shot up 3.6 after announcing that GE Healthcare president John Flannery would be promoted to chief executive, replacing Jeff Immelt, the long-time chief who is retiring. The shift comes as GE faces pressure to cut costs after divestitures of finance assets and other moves failed to ignite strong growth.

Source: AFP/de