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GLOBAL MARKETS-Wall Street tumbles on chip stocks, commodities soften after wild ride

Published 20/04/2018, 05:33 am
© Reuters.  GLOBAL MARKETS-Wall Street tumbles on chip stocks, commodities soften after wild ride
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* U.S. shares dragged down by Apple, Philip Morris

* Oil prices settle after 3-year peaks on report Saudis want higher prices

* Nickel sees biggest jump in 6-1/2 years on sanctions worry

* Yield curve not as flat (Recasts after commodities soften; adds settled oil prices; updates throughout)

By Hilary Russ

NEW YORK, April 19 (Reuters) - Wall Street stocks fell on a broad-based slump in technology stocks and a tumble in consumer staples on Thursday, while oil prices softened and other commodities went on a wild ride.

Rising U.S. Treasury yields widened the curve slightly after nine days of flattening, and supported a stronger dollar.

Strong corporate earnings had boosted stocks this week, but a tepid forecast on smartphone demand sent stocks from Apple AAPL.O to chipmakers tumbling on Thursday. .N

Tobacco company Philip Morris PM.N plunged as much as 16.5 percent after announcing weak results and forecasts, dragging down the S&P 500 index and rival Altria MO.N .

Oil prices softened after having spiked to highs not seen since 2014. do think we could see $70 pretty quick, but I want to caution that maybe we'll see the market level out a little bit in a few weeks," said Phil Flynn, analyst at Price Futures Group in Chicago.

U.S. crude CLcv1 fell 0.35 percent to $68.23 per barrel and Brent LCOcv1 was last at $73.71, up 0.31 percent.

Nickel and aluminum soared to multi-year highs, buoyed by talk that Saudi Arabia had its sights set on $80 to $100 a barrel oil and of more U.S. sanctions on Russian aluminum producers, including Rusan 0486.HK .

Nickel CMNI3 initially jumped by the most in 6-1/2 years and aluminum prices CMAL3 reached their highest since 2011. MET/L

But the metals later turned sharply negative, with analysts saying the gains were overdone. has been a very erratic day, it's a bit crazy," said

Rabobank metals sector economist Casper Burgering. "Nickel went up by almost 10 pct and aluminium by almost 8 percent and now are coming right back down." Expect more volatility, he said.

The Thomson Reuters CoreCommodity total return index .TRCCRBTR opened on Thursday near its highest since mid-2015, before giving back all its gains. O/R

The Dow Jones Industrial Average .DJI fell 116.23 points, or 0.47 percent, to 24,631.84, the S&P 500 .SPX lost 18.31 points, or 0.68 percent, to 2,690.33 and the Nasdaq Composite .IXIC dropped 57.58 points, or 0.79 percent, to 7,237.66.

The pan-European FTSEurofirst 300 index .FTEU3 rose 0.02 percent and MSCI's gauge of stocks across the globe .MIWD00000PUS shed 0.47 percent.

The bullish sentiment in markets comes amid wider optimism about economic growth. The global economy is expected to expand this year at its fastest pace since 2010, the latest Reuters polls of over 500 economists worldwide suggest, but trade protectionism could quickly slow it down. ECILT/WRAP

Investors were also relieved that no new U.S. demands on trade came out of a summit between Japanese Prime Minister Shinzo Abe and U.S. President Donald Trump. 10-year U.S. Treasury notes US10YT=RR last fell 14/32 in price to yield 2.9173 percent, its highest since Feb. 21.

The 30-year bond US30YT=RR fell 1-7/32 in price to yield 3.1097 percent, from 3.046 percent late on Wednesday.

The dollar .DXY rose 0.3 percent against a basket of major currencies as the higher yields and expectations of more Federal Reserve rate increases offset concerns about a trade war and a ballooning U.S. budget deficit. FRX/ MSCI and Nikkei chart

http://reut.rs/2sSBRiD

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