WASHINGTON: Wall Street opened lower on Monday, extending losses from Friday when fears for global growth saw stocks retreat.
Tech shares led losses, with Apple slipping on fears of lower sales. But crude oil prices in New York recovered some recent losses after Saudi Arabia announced a production cut, boosting oil stocks.
Equities markets were open but Treasury markets were closed in observance of Veterans Day.
About 10 minutes into the day’s trading, the benchmark Dow was 0.6 percent lower at 25,847.01. The broader S&P 500 fell 0.7 percent to 2,762.95 and the tech-heavy Nasdaq sank 1.3 percent, falling to 7,308.75.
Laser sensor maker Lumentum Holdings, which supplies parts for Apple Inc’s iPhones, plunged 28 percent after revealing that a major client had cut orders.
Apple also fell four percent.
“This corporate news is causing a stir because it feeds into the market’s concerns about a slowdown in global growth that will crimp earnings prospects,” analyst Patrick O’Hare wrote at Briefing.com.
Meanwhile, supermajor oil producers and Dow members Exxon Mobil and Chevron were both up 0.5 and 0.4 percent respectively on word of the Saudi production cut and possible output limits by other producers.
SAP was 5.2 percent lower after offering $8 billion in cash to acquire consumer data and survey software maker Qualtrics.
British American Tobacco sank seven percent in New York, adding to steep losses in London, following media reports that the US Food and Drug Administration plans to seek a ban on methol cigarettes. —AFP