June 19, 2013
Tech shares lead Wall Street lower
Technology shares led US stocks lower after a downgrade of semiconductors, helping push the sector below a key technical level, which could mean further losses.
A semiconductor index dropped 3.1 percent and broke below its 50-day moving average, a widely followed technical level.
The Dow Jones industrial average dropped 106.03 points, or 0.87 percent, at 12,063.85. The Standard & Poor's 500 Index was down 13.76 points, or 1.04 percent, at 1,307.39. The Nasdaq Composite Index slid 53.10 points, or 1.91 percent, at 2,731.57.
European equities edged higher, with Alcatel-Lucent leading the technology shares higher after a broker upgrade, though strong oil prices on mounting unrest in the Arab world limited market gains.
At 0953 GMT, the FTSEurofirst 300 index of top European shares was up 0.3 percent at 1,151.73 points after falling to a low of 1,143.64 earlier in the session. The index dropped 0.6 percent on Friday.
Telecom gear maker Alcatel-Lucent rose 3.9 percent as Berenberg raised the company to "buy" from "sell" and increased the price target to 4.40 euros from 1.70 euros. The STOXX Europe 600 Technology .SX8P, up 0.5 percent, was the top gainer.
But investors remained cautious on concerns that strong crude oil prices will hurt global economic recovery. There are worries that a prolonged period of high energy prices could erode company profits and add to inflationary pressures.