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US: Stocks fall on tech weakness; oil rises
[NEW YORK] US stocks reversed an early climb and ended lower Tuesday, as weakness in technology and financial shares weighed on benchmarks. Oil briefly rose above US$75 a barrel for the first time since November 2014 before paring the gain.
All major equity benchmarks dropped, with the S&P 500 Index stumbling after a Chinese court temporarily banned Micron Technology Inc. chip sales in the country. The Nasdaq 100 Index plunged on the news, ending down more than 1 per cent. US stock markets closed at 1pm in New York, while the bond market shut at 2pm.
The dollar retreated. In China, an earlier pledge by the governor of nation's central bank not to use the yuan as a weapon in any trade dispute assuaged some fears and helped it reverse losses. That boosted developing-nation currencies overall, though Turkey's lira slumped after inflation data. The Swedish krona strengthened as the country's central bank stuck to its plan to start lifting interest rates.
Meanwhile, the global trade spat between the world's biggest economies appeared to be worsening, with US President Donald Trump taking measures to prevent China Mobile Ltd. from entering the US market.
"It certainly looks like there will be no deal before the tariffs take effect, at least the first round of US$34 billion," said John Vail, chief global strategist at Nikko Asset Management. "I think negotiations will start after that to perhaps prevent any further escalation, but for the first part it looks like it's going to happen."
Telephone companies led an advance in the Stoxx Europe 600 Index, while miner Glencore Plc headed for the biggest decline in two years after saying it was subpoenaed by the US Department of Justice. Commodities climbed as metals recovered after losses that saw platinum drop to the lowest in nine years.