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Nasdaq drops for third day on global growth worries

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The tech-heavy Nasdaq fell on Monday to your third straight day as being a sell-off in Chinese markets sparked concerns about slowing global economic growth, even though S&P 500 pared losses to finish nearly flat.

Beijing announced a steep decline in how much cash that banks must hold as reserves, aimed at lowering financing costs and spurring growth amid the trade spat. In Monday’s trading session, the very first trading session for mainland China investors since new US and Chinese tariffs went into effect, both Chinese stocks and the yuan slid.

The chance of tapering global growth, led by China’s slowdown, spurred a retreat on the high-flying tech sector , which declined 1.2%.

Among the best drags upon the Nasdaq additionally, the S&P 500 were Microsoft Corp, down 1.1%, and Adobe Systems Inc, down 3.2%.

By contrast, defensive sectors, including utilities , consumer staples, and real-estate , led the S&P’s major sectors in%age gains.

“Growth stocks are very responsive to global growth expectations,” said Chad Morganlander, senior portfolio manager at Washington Crossing Advisors in Florham Park, Nj. “When you see concern about that, you’ll understand the reversal of that trade.”

The Dow Jones Industrial Average rose 39.73 points, or 0.15%, to 26 486.78, the S&P 500 lost 1.14 points, or 0.04%, to 2 884.43 and also the Nasdaq Composite dropped 52.50 points, or 0.67%, to 7 735.95.

The US bond market was closed for any Columbus Day holiday.

Shares of Google parent Alphabet were pressured after Google announced that data from around 500 000 users of their myspace and facebook Google+ had been in contact with external developers. The firm claimed it would shut down the buyer sort of Google+. Alphabet shares ended 1% lower.

General Electric shares rose for your sixth day back to back right after the company claimed it promises to sell $1 billion in energy investments to Apollo Global Management. GE shares ended the session up 3.3%.

Declining issues outnumbered advancing ones to the NYSE with a 1.06-to-1 ratio; on Nasdaq, a single.45-to-1 ratio favoured decliners.

The S&P 500 posted eight new 52-week highs and 23 new lows; the Nasdaq Composite recorded 17 new highs and 138 new lows.

Volume for us exchanges was 6.93 billion shares, compared with the 7.22 billion-share average throughout the last 20 trading days.

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