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GLOBAL MARKETS-Stocks sell off as tech tumbles; dollar hits 16-month high

Published 13/11/2018, 08:45 am
© Reuters.  GLOBAL MARKETS-Stocks sell off as tech tumbles; dollar hits 16-month high
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* U.S. stock indexes sink; Apple, Goldman weigh

* Dollar climbs on Fed bets, Europe risks

* Global stocks gauge drops for 3rd straight session

* U.S. crude ends lower for 11th consecutive session (Updates with close of U.S. trading)

By Lewis Krauskopf

NEW YORK, Nov 12 (Reuters) - U.S. and European stocks fell sharply on Monday, with tech stocks in both regions getting hammered, while the U.S. dollar surged to its highest point in 16 months against a basket of currencies amid concern about European political risks.

Major U.S. stock indexes dropped about 2 percent or more. Indexes were weighed down by a 5.0 percent slump in index heavyweight Apple AAPL.O , after an iPhone parts supplier cut its outlook. prices gave up an initial rally and turned negative, which may have contributed to the steeper sell-off in U.S. equities at the end of the session.

"The concerns are all about global economic growth, specifically demands for the products of companies like Apple," said Kate Warne, investment strategist at Edward Jones in St. Louis. "Investors are becoming more concerned about faster-growing companies and whether they will continue to grow at that pace."

The Dow Jones Industrial Average .DJI fell 602.12 points, or 2.32 percent, to 25,387.18, the S&P 500 .SPX lost 54.79 points, or 1.97 percent, to 2,726.22 and the Nasdaq Composite .IXIC dropped 206.03 points, or 2.78 percent, to 7,200.87. shares fell as the main supplier for its Face-ID technology, Lumentum Holdings Inc LITE.O , slashed revenue and profit forecasts, citing reduced orders from a major customer. Lumentum shares tumbled 33.0 percent and shares of other Apple suppliers also dropped. S&P 500 technology sector .SPLRCT , a main driver of the long U.S. bull run in stocks, sank 3.5 percent.

Goldman Sachs (NYSE:GS) GS.N shares fell 7.5 percent, weighing on the financials sector .SPSY and the Dow industrials, after a report that Malaysia would seek full refund of fees paid to the bank related to state fund 1MDB. an ugly sell-off across the board, led by Apple and Goldman," said J.J. Kinahan, chief market strategist at TD Ameritrade in Chicago.

European shares were lower led by a sell-off in technology stocks after earnings and M&A news from German heavyweights Infineon IFXGn.DE and SAP SAPG.DE . pan-European STOXX 600 index .STOXX lost 1.01 percent.

MSCI's gauge of stocks across the globe .MIWD00000PUS shed 1.60 percent, its third straight session of declines.

In Europe, fears about a no-deal Brexit and a growing rift over Italy's budget put pressure on the euro and the pound. The dollar also gained strength as investors built bets on a U.S. Federal Reserve interest rate increase next month.

The dollar index .DXY rose 0.81 percent, with the euro EUR= down 1.04 percent to $1.1216. crude prices fell for the 11th consecutive session, the most on record since the contract began trading, retreating from a rally early in the session as U.S. President Donald Trump said he hoped there would be no oil output reductions. comment followed remarks from Saudi Arabia's energy minister saying OPEC was considering cutting supply next year, citing softening demand.

U.S. crude CLc1 fell 26 cents a barrel to settle at $59.93. Brent crude futures LCOc1 reversed course late in the session, settling down 6 cents at $70.12 a barrel.

Both U.S. and Brent contracts continued to drop in post-settlement trading.

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