US stocks post weekly loss amid tech sell-off, trade fears

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US stocks ended lower for the holiday-shortened week, as the market was dented by tumbling tech shares amid global trade tensions.

All three major indices reported negative results, with the Dow, the S&P 500 and the Nasdaq declining 0.18 percent, 1.03 percent and 2.55 percent, respectively.

Tech stocks experienced a turbulent week. The sector dropped nearly three percent this week as investors were concerned over potential regulation for tech companies.

Shares of Twitter and Facebook fell 13.3 percent and 7.2 percent this week, respectively, after executives of the two US social media giants testified before Congress on how to stop online abuse and election meddling. Shares of Apple, Amazon and major US chipmakers also struggled for gains.

The underperforming tech shares led the Nasdaq to post four-day losing streak.

For US e-commerce giant Amazon, there was still a day to remember this week. Amazon hit one trillion US dollars in market cap on Tuesday, becoming the second publicly traded US company to reach the historical threshold after Apple.

Its shares rose nearly two percent to a high of 2,050.50 US dollars apiece in morning trading, bringing it to reach the record valuation. The stock needed to hit a price of 2,050.27 US dollars to reach the 1-trillion-dollar milestone based on its share count, according to the company's recent quarterly report in July. The stock retreated after the record high.

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Fears of intensifying trade tensions between Washington and its key trading partners lingered over the week, weighing on the market.

Negotiators from the United States and Canada on Wednesday resumed trade talks after the two sides failed to reach a deal on the North American Free Trade Agreement (NAFTA) last week. It remains unclear whether the two countries can work out their differences through the extended talks.

Talks on renegotiating the NAFTA began in August 2017 as US President Donald Trump threatened to withdraw from the trilateral trade deal, which he claimed harmed US industries and jobs.

Wall Street also digested a slew of economic data.

The US economy added 201,000 jobs in August, and the unemployment rate was unchanged at 3.9 percent, the Labor Department said on Friday.

Meanwhile, the average wage paid to US workers rose by 10 cents to 27.16 US dollars per hour. The yearly rate of earnings growth climbed to 2.9 percent in August from the July reading of 2.7 percent, the report showed.

The number of US weekly jobless claims was 203,000 in the week ending September 1, a decrease of 10,000 from the previous week's unrevised level, the Labor Department said on Thursday. The 4-week moving average was 209,500, a decrease of 2,750 from the previous week's unrevised average of 212,250.

US private sector employment increased by 163,000 jobs from July to August, ADP August National Employment Report showed.

Meanwhile, the US Institute for Supply Management (ISM) non-manufacturing index rose to 58.5 in August from the July reading of 55.7, beating market consensus. A reading above 50 indicates expansion in the service sector while a reading below 50 signals contraction.

Source(s): Xinhua News Agency