Facebook weighs on Nasdaq and S&P, but trade optimism boosts Dow
By April Joyner NEW YORK (Reuters) - Facebook's slump set the Nasdaq on pace for its biggest drop in a month, but industrial stocks rose after the United States and the European Union said they would negotiate on trade. Facebook Inc shares dived 19.6 percent, set for their biggest ever one-day percentage drop, after the social media giant forecast years of lower profit margins.
By April Joyner
NEW YORK (Reuters) - Facebook's slump set the Nasdaq on pace for its biggest drop in a month, but industrial stocks rose after the United States and the European Union said they would negotiate on trade.
Shares of Amazon.com Inc
Shares of Twitter Inc
But while the Nasdaq and the S&P 500 slumped, the Dow rose, in part on the strength of industrial stocks. Industrials, which have been a bellwether of trade tensions, were lifted after U.S. President Donald Trump and the European Commission President Jean-Claude Juncker agreed to work to resolve U.S. tariffs on steel and aluminium and Europe's retaliatory duties.
"Yesterday, there was a divergence between the Dow and the Nasdaq, and you're continuing to see that today," said Shawn Cruz, manager of trader strategy at TD Ameritrade in Chicago. "Facebook is such a big component of the Nasdaq. A sudden reversal can have a chilling effect."
The Dow Jones Industrial Average <.DJI> rose 121.25 points, or 0.48 percent, to 25,535.35, the S&P 500 <.SPX> lost 8.7 points, or 0.31 percent, to 2,837.37 and the Nasdaq Composite <.IXIC> dropped 82.45 points, or 1.04 percent, to 7,849.79.
Another drag on the S&P and Nasdaq was Biogen Inc
Chipmakers, however, were a bright spot amid Thursday's declines. The Philadelphia SE Semiconductor Index <.SOX> rose 1.7 percent.
Shares of Advanced Micro Devices Inc
Shares of Qualcomm Inc
Advancing issues outnumbered declining ones on the NYSE by a 1.44-to-1 ratio; on Nasdaq, a 1.25-to-1 ratio favoured advancers.
The S&P 500 posted 52 new 52-week highs and five new lows; the Nasdaq Composite recorded 110 new highs and 66 new lows.
(Reporting by April Joyner; Additional reporting by Amy Caren Daniel in Bengaluru; Editing by Shounak Dasgupta and Susan Thomas)
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