Tech shares lead US stocks lower
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Traders work on the floor of the New York Stock Exchange, in New York City.
PHOTO: REUTERS
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NEW YORK - Large tech companies led stocks lower on Wednesday as investors digested disappointing China data ahead of a key US inflation report.
Shares of Amazon, Facebook parent Meta and Netflix all fell 1.5 per cent or more as US stocks struggled for a second day in a row.
The Dow Jones Industrial Average finished down 0.5 per cent at 35,123.75.
The broad-based S&P 500 shed 0.7 per cent to 4,467.75, while the tech-rich Nasdaq Composite Index dropped 1.2 per cent to 13,722.02.
China slipped into deflation for the first time in more than two years in July, official data showed, as slowing domestic spending weighs on the post-Covid economic recovery.
“The latest Chinese inflationary data did little to inspire confidence that an economic turnaround is forthcoming,” Mr Tim Waterer, chief market analyst at KCM Trade, said in a note.
The China data comes ahead of Thursday’s closely watched consumer price index data in the United States, which is seen as influential in Federal Reserve monetary policy.
Penn Entertainment jumped 9.1 per cent after it announced a deal with Disney’s ESPN to create a branded sportsbook for US audiences as both companies try to monetise sports-betting.
Disney dipped 0.7 per cent, while DraftKings, which offers sports betting, sank 10.9 per cent.
Lyft slid 10 per cent as the ride-hailing company reported a loss of US$114.3 million. Analysts cited concerns about the company’s lagging profitability compared with rival Uber. AFP
