Tech sell-off weighs again on stocks; dollar slips
- Author: Zachary Reyes Jun 13, 2017,
Jun 13, 2017, 4:42
In Asian markets, Japan's Nikkei Stock Average fell 0.52 percent, Hong Kong's Hang Seng Index fell 1.24 percent, China's Shanghai Composite Index declined 0.59 percent and India's BSE Sensex fell 0.53 percent. Shares of the world's most valuable listed company fell 2 percent to $145.97 in heavy premarket trading on Monday.
Gains for energy and industrial companies failed to offset the losses, which spread to other sectors.
Futures for the Dow Jones Industrial Average declined 37 points to 21,170.00, while the Standard & Poor's 500 index futures fell 6.25 points to 2,422.00.
"Money is finding home in unloved sectors like financials and energy", Hogan said. On the Nasdaq, 1,398 issues rose and 1,294 fell.
Tech stocks have surged since President Donald Trump's inauguration in January, with the technology sector of the S&P 500 up almost 14% in value and according to Reuters, at its most expensive since early 2008 in terms of price to earnings expectations. But not all tech stocks (http://www.marketwatch.com/story/the-surprise-tech-stocks-that-are-bucking-the-selloff-2017-06-12) were getting caught up in the selloff.
Investors are likely to be on the sidelines ahead of the Federal Reserve's two-day meeting starting Tuesday, where traders see a 94 percent chance for an interest rate hike.
Apple shares have added to last week's drop to lead a United States markets downturn as tech, still the best performing S&P 500 sector this year, succumbed under its own weight.
Mizuho Securities also cut its rating on Apple's stock to "neutral" from "buy" on Monday, citing it has outperformed this year and enthusiasm over the "upcoming product cycle is fully captured at current levels". Still, Apple shares are up 24% year to date, compared with 8.3% for the S&P 500.
On the upside, General Electric Co.'s shares (GE) rose 3.9% following news that CEO Jeff Immelt is retiring (http://www.marketwatch.com/story/ges-jeff-immelt-to-step-down-as-ceo-and-chairman-2017-06-12-6914026) after almost 16 years at the helm of the company and will be replaced by John Flannery, now president and CEO of GE Healthcare. Hanesbrands Inc.(HBI) shares rose 3.3%, while shares of Nike Inc.(NKE) advanced 1.2%.
Tech stocks have been falling way more than the broader market over the last few days. Oil futures traded higher, while gold futures and a key dollar index were trading flat, Treasury yields inched higher, with the 10-year yield was down at 2.193%.