It was mostly an uneventful day on Wall Street with the Nasdaq ending the trading day on Monday in negative territory for the third straight day as a sell-off in Chinese markets sparked concerns about slowing global economic growth, though the S&P 500 pared losses to end nearly flat.
Beijing announced a steep cut in the level of cash that banks must hold as reserves, aimed at lowering financing costs and spurring growth amid the trade spat. In Monday’s trading session, the first trading session for mainland China investors since new U.S. and Chinese tariffs went into effect, both Chinese stocks and the yuan slid.
The possibility of tapering global growth, led by China’s slowdown, spurred a retreat from the high-flying tech sector, which declined 1.2 percent.
Among the largest declines on both the Nasdaq and the S&P 500 were Microsoft Corp, down 1.1 percent, and Adobe Systems Inc, down 3.2 percent. By contrast, defensive sectors, including utilities, consumer staples, and real estate, led the S&P’s major sectors in percentage gains.
The U.S. bond market was closed for the Columbus Day holiday.
Shares Alphabet were pressured after Google announced that data from up to 500,000 users of its social network Google+ may have been exposed to external developers. The company said it would shut down the consumer version of Google+. Alphabet shares ended 1 percent lower.
General Electric rose for the sixth day in a row after the company said it plans to sell $1 billion in energy investments to Apollo Global Management. GE ended the day up 3.3 percent.
Approximately 6.93 billion shares changed hands on the major domestic equity exchanges, as compared to the 7.22 billion share average over the past 20 trading days.