Tech stocks weigh on Wall Street, Nasdaq set for third straight decline
By Stephen Culp (Reuters) - A broad sell-off of technology stocks pushed all three major U.S. stock indexes lower, with the Nasdaq Composite set to post its third consecutive loss of more than 1 percent for the first time since August 2015. The technology index tumbled 1.6 percent as disappointing results stoked fears about future growth for the sector that has led the equity market to record highs
By Stephen Culp
(Reuters) - A broad sell-off of technology stocks pushed all three major U.S. stock indexes lower, with the Nasdaq Composite set to post its third consecutive loss of more than 1 percent for the first time since August 2015.
The technology index <.SPLRCT> tumbled 1.6 percent as disappointing results stoked fears about future growth for the sector that has led the equity market to record highs.
Shares of Facebook Inc
But the technology profit-taking was widespread, pushing all three major U.S. stock indexes into negative territory.
"There's a lot of money and speculation piled into the FAANG stocks and now that money is coming out," said Wayne Kaufman, chief market analyst at Phoenix Financial Services in New York. "It's money coming out of a crowded trade, and people are concerned about the midterm election news cycle and about tariffs to some degree."
With second-quarter reporting season now well past its mid-point, analysts now expect S&P earnings to have increased by 22.6 percent, up from the 20.7 percent seen on July 1. Of the 270 companies having posted results, 82.6 percent have beat consensus estimates.
The Dow Jones Industrial Average <.DJI> fell 80.16 points, or 0.31 percent, to 25,370.9, the S&P 500 <.SPX> lost 11.69 points, or 0.41 percent, to 2,807.13 and the Nasdaq Composite <.IXIC> dropped 94.13 points, or 1.22 percent, to 7,643.29.
Of the 11 major sectors of the S&P 500, five were in negative territory.
Shares of CBS Corp
Tyson Foods Inc
The warning also weighed on shares of Hormel Foods Corp
Energy stocks were among the gainers, up 0.4 percent as oil prices
The financial sector <.SPSY> advanced 0.4 percent ahead of this week's meeting of the U.S. Federal Reserve, with JP Morgan Chase & Co
Industrial bellwether Caterpillar Inc
Advancing issues outnumbered declining ones on the NYSE by a 1.07-to-1 ratio; on Nasdaq, a 1.30-to-1 ratio favoured decliners.
The S&P 500 posted 14 new 52-week highs and 2 new lows; the Nasdaq Composite recorded 25 new highs and 84 new lows.
(Reporting by Stephen Culp; Editing by Nick Zieminski)
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