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Overnight Markets: Wall Street plunges as oil prices extend retreat

Overnight Markets: Wall Street plunges as oil prices extend retreat

US stocks fell on Monday, with the Dow Jones Industrial Average tumbling more than 600 points, pulled down by a broad sell-off in technology and financial shares and as crude oil prices extended their retreat.

The Dow Jones dropped 602 points, or 2.3%, to 25,387, the S&P 500 fell 55 points, or 2%, to 2,726, while the Nasdaq Composite Index declined 206 points, or 2.8%, to 7,201.

Apple shares fell 5% after several suppliers to the company, including Lumentum Holdings, whose components power the iPhone's Face ID technology, cut their forecasts.

Lumentum shares plunged 33%. Shares of several chipmakers that sell to Apple, such as Cirrus Logic, Qorvo and Skyworks Solutions, dropped as well.

In the financial sector, Goldman Sachs plunged 7.2% after Bloomberg reported that Malaysian Finance Minister Lim Guan Eng said the country was seeking a full refund of all the fees it paid to the Wall Street bank for arranging billions of dollars of deals for troubled state fund 1MDB.

General Electric shares fell 7.2% after chief executive Larry Culp said the company was saddled with too much debt.

SAP’s stocks slumped 6.4% after the company agreed to purchase Qualtrics International Inc. for $8 billion in cash.

In another deal news, shares of Athenahealth surged 9.7% after the health-care services firm confirmed that it was being acquired by affiliates of Veritas Capital and Elliott Management Corp.’s Evergreen Coast Capital.

Abiomed tumbled 17%, after the results of an FDA study into one of the firm’s heart-pump products disappointed investors.

Aurora Cannabis fell 4.5%, erasing earlier gains, despite the Canada-based cannabis company reporting fiscal first-quarter net earnings that rose to $105.5 million from $3.6 million a year ago.

In Asia, shares declined on Tuesday in morning session following broad sell-off on Wall Street overnight.

Japan's Nikkei 225 fell 3.08%, while the Topix index saw losses of 2.68%. Markets in Greater China also started the day in negative territory. Hong Kong's Hang Seng Index traded down by 1.6%. Stocks in Shanghai were lower by 0.27%.

The losses spilled over to South Korea, where the Kospi shed 1.29%. In Australia, the ASX 200 fell 1.55%.


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