BUSINESS US stocks plummet on concerns over growth, earnings prospects

BUSINESS

US stocks plummet on concerns over growth, earnings prospects

AP

16:51, May 14, 2019

NEW YORK, May 13 (Xinhua) -- US stock indices dived more than 2 percent on Monday as investors' sentiment was hit by grave concerns over the prospects of economic expansion and corporate earnings in the coming quarters.

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In this May 9, 2019, file photo trader Jonathan Corpina works on the floor of the New York Stock Exchange. The US stock market opens at 9:30 a.m. EDT on Monday, May 13. (Photo: AP)

The leading stock indices had significant low opening and extended losses during the session before paring some losses at closing.

The Dow Jones Industrial Average lost 617.38 points, or 2.38 percent, to 25,324.99. The S&P 500 dropped by 69.53 points, or 2.41 percent, to 2,811.87. The Nasdaq Composite Index sank 269.92 points, or 3.41 percent, to 7,647.02.

The Dow Jones Industrial Average once lost as much as 719.86 points or 2.77 percent in the session, marking the deepest fall since Jan. 3. The S&P 500 also saw its biggest decrease since early January. Meanwhile, the Nasdaq Composite Index registered the heaviest loss so far this year.

Nine of the 11 primary S&P 500 sectors traded lower at market close, with the real estate sector closing even and utilities sector up 1.11 percent due to strong safe-haven demand.

In particular, technology sector led the losses and shed as much as 3.71 percent. The stocks of Apple Inc. slumped 5.8 percent and chipmaker NVIDIA fell 6.1 percent.

"In recent months global manufacturing has slowed, in part due to previous trade tariffs that led companies to delay their investment decisions," said a research note by UBS Global Wealth Management on Monday.

In the last five trading sessions, the Dow Jones Industrial Average deceased 4.21 percent, while S&P 500 Index and Nasdaq Composite Index dropped 4.11 percent and 5.86 percent, respectively.

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