United States markets ended the day sharply lower on Monday weighed down by steep losses in technology, financial and energy stocks. The slide followed sharp drops in Europe and set the market on course for its second big loss in a row. Crude oil prices slumped again.
KEEPING SCORE At the close, the Dow Jones industrial average fell 1 percent and the Standard & Poor’s 500-stock index was down 1.4 percent. The Nasdaq composite index dropped 1.8 percent. Earlier, the indicators were down as much as 3 percent in a broad sell-off.
THE QUOTE “Traders are worried that the financial market weakness that we’re experiencing is going to lead to weakness in the real economy,” said Jim McDonald, chief investment strategist at Northern Trust Wealth Management.
TURBULENT MARKET Several factors have investors in a selling mood this year, including falling crude oil prices and the economic slowdown in China and elsewhere. Traders will be monitoring several big company earnings this week to see what management teams say about their prospects for future earnings.
SHARED PAIN Shares of the bank Credit Suisse ended down 3.6percent on news that its new chief executive had asked for his bonus to be cut after a report of a huge fourth-quarter loss and plans for 4,000 job cuts.
ROUGH QUARTER Cognizant Technology Solutions stock sank 7.7 percent after it forecast earnings and revenue that were well below what analysts were expecting.
IN TROUBLE Shares of Harman International Industries were down 4.57 percent on news that a former executive at Harman, a car audio and video systems maker, has been charged with insider trading by federal prosecutors.
GOING PRIVATE Shares of Apollo Education Group vaulted 24 percent after it agreed to be acquired by a consortium led by the investment firm Vistria Group. The firm aims to take Apollo Education, the operator, private.
EUROPEAN MARKETS In Germany, the DAX fell 3.3 percent and in France, the CAC 40 lost 3.2 percent. The FTSE 100 was down 2.7 percent in Britain.
ENERGY Oil prices were falling again, with benchmark United States crude settling below $30 a barrel. Crude oil futures for March ended down $1.20 at $29.69 a barrel. The April contract for Brent crude, a benchmark for international oils, fell $1.18 a barrel on the Intercontinental Exchange to settle at $32.88.
ASIA’S DAY Trading in Asia was a little bit more benign as many markets were closed for the Lunar New Year holidays. The Nikkei 225 ended up 1.1 percent in Japan and in Australia, the S.&P./ASX 200 was flat.
CURRENCIES AND BONDS In risk-averse conditions, the dollar often garners support. The euro was up at $1.1178 while the dollar fell to 115.39 yen. Bond prices rose. The yield on the 10-year Treasury note fell to 1.76 percent.