(Reuters) - A broad sell-off of technology stocks pushed all three major U.S. stock indexes lower, with the Nasdaq Composite set to post its third consecutive loss of more than 1 percent for the first time since August 2015.
Traders work on the floor of the New York Stock Exchange shortly after the opening bell in New York, U.S., July 27, 2018. REUTERS/Lucas Jackson
The technology index .SPLRCT tumbled 1.6 percent as disappointing results stoked fears about future growth for the sector that has led the equity market to record highs.
Shares of Facebook Inc (FB.O) and Netflix Inc (NFLX.O) were down 3.6 percent and 4.9 percent, respectively, leading the so-called FAANG stocks lower. Other FAANG stocks include Apple Inc (AAPL.O), Amazon.com (AMZN.O), and Google parent Alphabet Inc (GOOGL.O).
But the technology profit-taking was widespread, pushing all three major U.S. stock indexes into negative territory.
“There’s a lot of money and speculation piled into the FAANG stocks and now that money is coming out,” said Wayne Kaufman, chief market analyst at Phoenix Financial Services in New York. “It’s money coming out of a crowded trade, and people are concerned about the midterm election news cycle and about tariffs to some degree.”
With second-quarter reporting season now well past its mid-point, analysts now expect S&P earnings to have increased by 22.6 percent, up from the 20.7 percent seen on July 1. Of the 270 companies having posted results, 82.6 percent have beat consensus estimates.
The Dow Jones Industrial Average .DJI fell 80.16 points, or 0.31 percent, to 25,370.9, the S&P 500 .SPX lost 11.69 points, or 0.41 percent, to 2,807.13 and the Nasdaq Composite .IXIC dropped 94.13 points, or
