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US-STOCKS-MARKETS
Nasdaq falls as tech companies grilled in Congress
NEW YORK, Sept 6, 2018 (BSS/AFP) – Technology shares were dragged lower by
Facebook and Twitter on Wednesday following tough questioning of their top
executives by Congress as US stocks ended mixed.
The tech-rich Nasdaq Composite Index fell 1.2 percent to 7,995.17.
The Dow Jones Industrial Average added 0.1 percent at 25,974.99, while the
S&P 500 lost 0.3 percent at 2,888.60.
Facebook shed 2.3 percent and Twitter lost 6.1 percent after executives
from the two social media companies acknowledged they had been caught off
guard ahead of the 2016 US elections when their platforms were manipulated by
Russian interests and other.
Twitter Chief Executive Jack Dorsey and Facebook Chief Operating Officer
Sheryl Sandberg told a Senate panel they had taken steps to address the
problem and pledged more action ahead.
The hearing elevated the prospect of tougher regulation from Washington on
technology companies, an idea furthered later Tuesday when the Justice
Department said it would probe whether the platforms were stifling
conservative ideas.
Tech shares were mostly lower, including Apple which slipped 0.7 percent,
Microsoft which dropped 2.9 percent and Google-parent Alphabet which lost 0.9
percent.
Stocks also were under pressure from trade worries as US trade deficit
surged to $50.1 billion in July, the second straight month with an increase,
on record imports and as the deficits with China and the European Union hit
all-time highs.
A higher trade deficit will dent third-quarter US growth and also could
inflame US trade relations with key partners as President Donald Trump’s
administration confronts Canada, China and others.
Shares of CVS Health and Aetna rose 1.2 percent and 1.4 percent after the
Wall Street Journal reported US antitrust officials were nearing approval of
the drugstore chain’s proposed purchase of the health insurer.
The same report said officials would also give the green light to Cigna’s
planned acquisition of Express Scripts. Express Scripts gained 3.3 percent,
while Cigna lost 0.6 percent.
BSS/AFP/HR/0950