Strong Dollar Pressure Plunges Dow by 600 Points

Andrew Cummings
November 15, 2018

A steep drop in technology companies sent USA stocks sharply lower Monday, knocking off more than 500 points from the Dow Jones Industrial Average. Apple shares tumbled on reports that a parts supplier to the tech giant has seen a drop in orders.

The Dow Jones Industrial Average sank by 2.3 percent from Friday's close, ending the day at 25,387. Goldman Sachs was the biggest drag on the Dow, which fell more than 2 per cent. The tech-heavy Nasdaq Composite pulled back 2.8 percent and fell back into the correction territory it first entered during the October market rout.

The Russell 2000 index of smaller companies gave up 3.99 points, or 0.3 per cent, to 1,514.80.

Ten of the 11 primary S&P 500 sectors closed lower, with technology and consumer discretionary down 3.54 percent and 2.31 percent, respectively, leading the laggards.

Monday's losses bring the Dow's decline over the past two sessions to 800 points. NRG Energy climbed 4.7 percent to $40.07.

The Russell 2000 is down 16.72 points, or 1.1 per cent. Shares in Lumentum plunged 30.6 percent to $38.84.

OPEC: The price of oil was down after Trump tweeted that he hoped Saudi Arabia and OPEC would not cut production.

FILE- In this November 7, 2018, file photo trader Timothy Nick, center, works with specialist Michael O'Mara on the floor of the New York Stock Exchange.

The US Treasury market was closed in observance of Veterans Day.

Meanwhile, the private-equity firm Veritas Capital and the hedge fund Elliott Management reached an all-cash deal to purchase the U.S. healthcare software maker Athenahealth for about $5.7 billion, a 12% premium to where shares closed Friday. US crude rose 60 cents to $60.79 a barrel, the first increase after the longest stretch of daily declines since 1984. Crude oil prices were headed higher, snapping a 10-day skid, after Saudi Arabia said it planned to cut its output. Brent crude, used to price worldwide oils, picked up 0.3 percent to $70.38 per barrel in London. The euro rose to $1.1252 from $1.1218.

The Toronto Stock Exchange held up slightly better, off about half a per cent to 15,290.The main reason for the comparative strength of Canada's biggest stock market was oil, which weighs heavily on the TSX's performance.

In Europe, London's FTSE traded lower by 0.2 percent, Germany's DAX was lower by 0.9 percent and France's CAC declined 0.3 percent. In Asia, markets finished mixed. Japan's Nikkei 225 added 0.1 percent, while Hong Kong's Hang Seng rose 0.1 percent. Australia's S&P-ASX 200 gained 0.3 percent.

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