US stocks tumble during early trade, weighed down by weakness in tech stocks
|Major US equity indices opened lower on Monday and were being weighed down by weakness in technology stocks, led by a steep decline in shares of the social-media giant - Facebook.
The Fed's upcoming monetary policy decision also held investors back from placing aggressive bets and contributed to the weaker tone at the start of a new trading week. A 25bps interest rate hike is nearly priced in the market and hence, the key focus would be on the updated economic projections/'dot plot', which would signal the central bank's future path of interest rate hikes and eventually influence sentiment around riskier assets - like equities.
Meanwhile, growing worries about a potential global trade war, especially after the US President Donald Trump's plans to levy tariffs on China, continued weighing on the investors' sentiment and should keep a lid on any meaningful near-term up-move.
At the time of writing this report, the Dow Jones Industrial Average was down around 120-points to 24,820 and the broader S&P 500 Index slipped nearly 15-points to 2,737. Meanwhile, tech-heavy Nasdaq Composite Index fell over 70-points, or 1.0%, and has now retreated back closer to 7,400 mark.
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