Wall Street opens sharply lower dragged by tech stocks

Eren Sengezer FXStreet

Major equity indexes in the U.S. started the day deep in the negative territory on Monday hurt by the ongoing conflict between the Chinese media giant Huawei and the U.S. government. As of writing, the Dow Jones Industrial Average and the S&P 500 were down 0.5% and 0.8% respectively while the tech-heavy Nasdaq Composite was erasing 1.7%.

In response to the U.S. ban on Huawei, China is said to considering suspending business with suppliers who agreed to halt supplying Huawei. Meanwhile, citing a company source familiar with the matter, Reuters reported that Google has decided to suspend business with Huawei that requires "the transfer of hardware, software and technical services except those publicly available via open source licensing."

The S&P 500 Technology Index was last down 1.65% on the day and the Communication Service was losing 0.8%. Among the 11 major S&P 500 sectors, the Financials and the Energy were in the positive territory in the early trade.

Author

Eren Sengezer

FXStreet

As an economist at heart, Eren Sengezer specializes in the assessment of the short-term and long-term impacts of macroeconomic data, central bank policies and political developments on financial assets.

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