Stocks take sharp losses; Apple, Microsoft, Amazon and Facebook drop

A board above the trading floor of the New York Stock Exchange shows the closing number for the S&P 500 index Wednesday Aug. 22 2018. The current bull run on Wall Street became the longest in history on Wednesday at 3,453 days beating the bull market

Wild Ride US Stock Markets See Dramatic Drop Again

The technology-dominated Nasdaq, which had fallen close to 3 percent earlier and briefly into the red for the year, fell 1.7 percent, extending its losses from its late August high to almost 15 percent.

Traders work at the New York Stock Exchange in New York, the United States, Nov. 20, 2018.

Stocks dropped again Tuesday as losses mounted for the world's largest technology companies.

Stocks are falling sharply as technology and internet companies suffer sharp losses after the USA and China clashed at a Pacific Rim summit over the weekend.

Facebook shares, which have sold off sharply in recent days, actually rose a half of a percentage point in the first hour of trading.

Apple sank 2.8 percent and Microsoft lost 2.2 percent.

Sentiment soured on FAANG stocks after investors digested a Wall Street Journal report that Apple (NASDAQ:AAPL) was considering cutting production as demand for its newest slate of phones was not as strong as the company had hoped.

Young said Wall Street essentially has a two-item wish list for the holidays: a general trade agreement between the US and China, and a sign the Fed will raise interest rates at a more gradual clip.

The Russell 2000 index of smaller-company stocks retreated 27.53 points, or 1.8 percent, to 1,469.01.

Nissan's US -listed shares slumped 5.1 percent after the carmaker's chairman, Carlos Ghosn, was arrested after allegedly under-reporting his income.

In Europe, Germany's DAX index lost 1.6 percent and France's CAC 40 shed 1.2 percent. The company also posted lighter-than-forecast same-store sales - a key metric for retailers.

Japan's benchmark Nikkei 225 dropped 0.4 percent and the Kospi in South Korea was down 0.3 percent.

This pressured the broader tech sector as Microsoft and Twitter also joined the retreat, while Amazon curbed losses.

All major S&P 500 sectors tumbled led by energy, industrials and financials. Nissan said an internal investigation found Ghosn under-reported his income by millions of dollars and engaged in other "significant misconduct".

Though the S&P technology index rose 0.6 percent, helped by a 9.7 percent gain in shares of Autodesk Inc, Apple shares ended down 0.1 percent at $176.78 after trading as high as $180.27 during the session. Nokia, a big supplier of telecom networks, fell 4 percent, and Ericsson lost 3.5 percent. Brent crude, the global standard traded in London, rose 1.5 per cent to $63.48 a barrel.

Bond prices rose. The yield on the 10-year Treasury note fell to 3.05 percent from 3.07 percent.

Safe-play stocks like utilities lagged the market. In Paris, shares of Nissan's partner Renault dropped 8.4%. Silver inched up 0.1% to $14.40 an ounce. The pound extended its gains to $1.2880 from $1.2879, on news that Britain and the European Union had reached a deal in principle on future relations.

CURRENCY: The dollar edged up to 112.59 yen from Monday's 112.53 yen.

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