A video board display's the closing numbers after the closing bell of the Dow Jones Industrial Average at the New York Stock Exchange on June 15, 2017 in New York. / AFP PHOTO
A video board display's the closing numbers after the closing bell of the Dow Jones Industrial Average at the New York Stock Exchange on June 15, 2017 in New York. / AFP PHOTO

Tech shares fall again as Trump, Fed worries weigh

Tech June 16, 2017 06:35

By Agence France-Presse

3,389 Viewed

NEW YORK- Technology shares suffered another bout of weakness Thursday, leading the broader market lower amid unease over rising US interest rates and uncertainty about President Donald Trump's agenda.



Analysts said lackluster data on US homebuilder sentiment and industrial production dented confidence in light of the Federal Reserve's decision Wednesday to raise the benchmark lending rate for the third time in six months, and signal an additional hike later this year.

Trump's travails also weighed on the market following reports the US president is being investigated personally for obstruction of justice.

The Dow Jones Industrial Average slipped 0.1 percent to close the day 21,359.90.

The broad-based S&P 500 dipped 0.2 percent to end at 2,432.46, while the tech-rich Nasdaq Composite Index fell 0.5 percent to 6,165.50.

Technology shares with declines included Apple, down 0.6 percent, Amazon, down 1.3 percent, Priceline, down 1.2 percent, and Tesla Motors, down 1.5 percent.

But industrial stocks moved in the opposite direction, with General Electric gaining 0.8 percent, and Boeing and Caterpillar each up 1.6 percent.

Retail and retail-dependent brands had another rough day.

Supermarket chain Kroger plummeted 19.1 percent after cutting its profit forecast due to ramped-up investment in e-commerce, higher wages and competitive pricing.

The meager outlook also hit Wal-Mart Stores, which lost 1.3 percent, Target, down 4.1 percent, and Dollar Tree, down 3.4 percent.

Dow member Nike dropped 3.2 percent after announcing it would cut two percent of its global staff as part of a reorganization plan to beef up direct selling to consumers as e-commerce roils the retail sector.

Mattel slumped 6.7 percent, falling for a second straight session after the company unveiled a turnaround strategy that included a big cut to the dividend to finance technology investment initiatives.