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Overnight Markets: Wall Street retreats after record run

Markets digested the US Senate’s approval of the biggest tax law change since the 1980s.

 
Overnight Markets: Wall Street retreats after record run

Wall Street retreated from record intraday highs notched earlier on Monday as technology stocks suffered a sharp sell-off.

The Dow Jones Industrial Average added 58 points, or 0.24%, to 24,290, the S&P 500 lost three points, or 0.11%, to 2,639 and the Nasdaq Composite dropped 72 points, or 1.05%, to 6,775.

Markets digested the US Senate’s approval on Saturday of the biggest tax law change since the 1980s, taking President Donald Trump closer to his goal of slashing taxes on businesses.

The Republicans’ tax plan is expected to add $1.4 trillion over 10 years to the $20 trillion national debt to finance changes that they say would further boost an already growing economy.

The S&P 500 set a record intraday high, but then pulled back and finished lower, while the Dow industrials still managed a record high close.

The technology sector, which has led Wall Street’s record-setting rally this year, tumbled 1.9%. Amazon lost 2.4%, Facebook 2.1% and Microsoft 3.8%.

Some of the biggest gainers included bank and industrial stocks. JP Morgan Chase rose 2.1% and Bank of America added 3.5%.

Retailers also were winners, with Macy's surging 6.7%, Lowe's 4.5% and Best Buy 3.7%.

Aetna (AET.N) shares fell 1.4% after drugstore chain operator CVS Health (CVS.N) agreed to buy the health insurer for $69 billion. CVS shares fell 4.6%.

Disney shot up 4.7% on reports it was in talks to buy assets from 21st Century Fox and after its animated movie Coco led the box office last weekend.

Sterling had a volatile session as hopes that the first phase of Brexit talks could reach a conclusion on Monday proved too optimistic.

Oil prices fell sharply but stayed in sight of recent two-year highs following last week’s agreement by Opec and major producers to extend output cuts.

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