US stocks tumble as tech shares hit

NEW YORK (AFP) – High-flying technology stocks were among the biggest losers on a down day for US stocks on Tuesday (June 27), as a key vote on President Donald Trump’s health care reform was delayed.

Shares of Google-parent Alphabet lost 2.5 per cent after the EU hit the search engine with a 2.4-billion-euro (S$3.8 billion) fine for illegally favouring its own shopping service in its results. Google said it is considering an appeal.

But the troubles went beyond Alphabet as other highly-valued companies also retreated. Facebook fell 2 per cent, Netflix declined 4.1 per cent and Tesla Motors fell 4 per cent.

The tech-rich Nasdaq Composite Index dropped 1.6 per cent to 6,146.62.

The Dow Jones Industrial Average shed 0.5 per cent to close the session at 21,310.66, while the broad-based S&P 500 fell 0.8 per cent to 2,419.38.

The declines came as Republican Senate leaders delayed a vote on a health care overhaul that has been a key part of Trump’s agenda and seen as a precursor to tax reform.

The International Monetary Fund cut its 2017 and 2018 US growth projections due to lack of details on Trump’s economic plans.

Sprint jumped 2.3 per cent following reports it is in talks with cable giants Comcast and Charter Communications on a venture that would allow the cable companies sell services on Sprint’s wireless network.

Comcast lost 0.9 per cent and Sprint telecom rivals were lower, with Verizon down 1.9 per cent, AT&T 1.1 per cent and T-Mobile US 3.2 per cent.

Darden Restaurants climbed 2.9 per cent after reporting an 8.1 per cent rise in fourth-quarter revenues on same-restaurant sales gains at Olive Garden and most of its chains.

Aluminum company Arconic slumped 9 per cent, tumbling for a second straight day on concerns about the role of the cladding in a catastrophic London high-rise fire.