Stocks finished lower Monday as lingering trade tensions between the U.S. and China continued to weigh on sentiment. The Dow dropped 84 points, while the S&P 500 lost 0.7%. The Tech-heavy Nasdaq Composite fell 1.5%.
Technology shares led decliners as several major companies began cutting ties with Chinese Telecom giant Huawei. This follows President Trump’s executive order signed last week, which essentially curbs Huawei’s access to U.S. technology. Google parent Alphabet shed 2.1% to $1,144.66 on news business activity with Huawei has been suspended. The Philadelphia Semiconductor Index retreated 4% to its lowest point in at least two months as several major chipmakers reported plans to stop supplying to the Chinese Telecom giant. Apple fell 3.1% to $183.09 as exposure to the ongoing trade dispute resulted in an analyst target price cut.
In M&A news, T-Mobile jumped 3.9% to $78.29, while Sprint surged 18.8% to $7.34 on expectations that both companies will agree on concessions for their proposed $25.5 billion merger. Meanwhile, Dish Network slipped 5.9% to $33.24 after reporting it would purchase assets from EchoStar Corp. in an $800 million deal. Breadth was negative on issues by 2:1 on the NYSE and 5:3 on the Nasdaq. Composite NYSE volume was more than 3.2 billion shares.
Treasuries declined, with the yield on the 10-year note up two basis points to 2.41% ahead of Wednesday’s release of the latest Fed meeting minutes. In commodities, WTI crude rose 0.6% to $63.11/barrel as Saudi Arabia and other key OPEC producers signaled plans to maintain output cuts.