startups

Stocks fall as tech giants drop – Long Island Business News


Major U.S. stock indexes closed mostly lower Monday as a sell-off in some big technology and internet companies weighed down the market.

Declines in Google’s parent Alphabet and Facebook depressed their sectors for much of the day, mostly offsetting gains in health care stocks, industrial companies and elsewhere. Amazon also saw a steep decline.

Alphabet tumbled as media reports suggested it faces an antitrust investigation by the Justice Department. Those reports also suggested Amazon could come under increased regulatory scrutiny. Meanwhile, the Federal Trade Commission is set to take the lead in any antitrust probe into Facebook, according to another published report.

The news helped pull technology and communications sector stocks broadly lower. Microsoft shed 2.4% and Twitter slid 4.3%. Apple dropped 0.7%, reversing an early gain, as the iPhone seller kicked off its annual software showcase. Facebook plunged 7.5%.

Among the gainers, Amgen climbed 4.7% and Merck rose 2.1%. General Dynamics added 2.1%.

The indecisive trading follows the first monthly loss for the market in 2019 as investors deal with uncertainty over the U.S. and its growing use of tariffs in international trade disputes. As of Friday, the S&P 500 was down 6.6% from its record set on April 30.

Investors spent the bulk of May fleeing to safer holdings as a global trade war flared up. China and the U.S. have been escalating their trade dispute with more tariffs on each other’s goods while also threatening to ban technology and resource sales. The U.S. expanded its trade war and threatened to impose tariffs on Mexican goods starting June 10 because of an immigration dispute.

All of these moves have rattled investors and their confidence in prospects for global economic growth. Bank of America Merrill Lynch lowered its earnings estimates for companies in the S&P 500, citing trade tensions. Analysts have also warned that uncertainty over trade deals will crimp business confidence and keep companies from investing internationally.





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