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Overnight Markets: US stocks fall on tech selloff

Overnight Markets: US stocks fall on tech selloff

 Wall Street falls on Monday as a selloff in technology shares weighed heavily on the Nasdaq and amid fresh flare up in tensions between the US and North Korea.

The Dow Jones Industrial Average declined 54 points, or 0.24%, to 22,296, the S&P 500 lost six points, or 0.22%, to 2,497 and the Nasdaq Composite dropped 56 points, or 0.88%, to 6,371.

North Korea’s foreign minister said President Donald Trump had declared war on the country and it reserved the right to take countermeasures, including shooting down US bombers even if they are not in its airspace.

The comments buoyed safe-haven assets, with gold up 1% and the Japanese yen strengthened 0.26% versus the greenback at 111.71 per dollar.

Tech names such as Facebook (FB.O), off 4.5%, Microsoft (MSFT.O), down 1.55%, and Apple (AAPL.O), off 0.88%, were among the biggest drags on the benchmark S&P 500 index.

Apple shares flirted with correction territory following a report that the company had told suppliers to scale back shipments of parts for its upcoming iPhone X.

The losses in tech were offset somewhat by a sharp climb in the energy sector, which gained 1.47%. Oil prices hit a more than two-year high after Turkey threatened to cut oil flows from Iraq’s Kurdistan region toward its ports.

Genuine Parts (GPC.N) shares jumped 5.96% as the best performer on the S&P 500 after the car parts distributor said it would enter the European market with a deal to buy peer Alliance Automotive Group for about $2 billion.

Allergan (AGN.N) was up 3.40% after the drugmaker authorised a $2 billion buyback of its shares.

In Asia, markets were pressured in Tuesday in morning session, following declines on Wall Street overnight, as the war of words between North Korea and the US escalated.

Japan's Nikkei 225 sank 0.28% after the yen strengthened overnight. Across the Korean Strait, the Kospi declined 0.12% as geopolitical tensions weighed.

Down Under, the S&P/ASX 200 wobbled around the flat line. The index edged down 0.06%. Greater China markets were moderately lower. Hong Kong's Hang Seng Index was off 0.16% in early trade. On the mainland, the Shanghai Composite edged down 0.03% and the Shenzhen Composite lost 0.27%.

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