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BUSINESS Friday 7 September 2018
A25

US stocks sink again as tech shares extend slump

By MARLEY JAY bet dipped 2.5 percent
Associated Press to $1,168.80. They each
NEW YORK (AP) — Tech- dropped Wednesday af-
nology companies are on ter Congressional hearings
pace for their second day on search and social me-
of sharp losses Thursday, dia. Facebook and Twitter
and U.S. stocks are down executives testified, while
for the third day in a row. Alphabet was not repre-
Some of the biggest com- sented after it declined to
panies on the market, in- send its CEO.
cluding Apple, Google TRADE UPDATE: The U.S.
parent Alphabet and Face- could put a 25 percent tax
book, are absorbing some on $200 billion in Chinese
of the largest losses. Energy goods.
companies and banks are A public comment period
also lower. on the proposal expired
Investors are waiting to see overnight and media re-
if the Trump administration ports have said the tariffs
will put new tariffs on im- could be announced this
ports from China, the na- week.
tion's largest trading part- The U.S. and China have
ner. Trade talks with the put taxes on $50 billion in
U.S.'s next-largest trading imports, but the larger tar-
partner, Canada, are con- This April 5, 2018, file photo shows a building's address on Wall Street in New York. iffs would represent a major
tinuing. Associated Press escalation in the dispute
KEEPING SCORE: The S&P between the two larg-
500 index slid 15 points, or The Nasdaq composite fell companies have outper- 1.9 percent to $222.56 and est trading partners in the
0.5 percent, to 2,873 as of another 75 points, or 0.9 formed the broader S&P Micron Technology shed world. China has vowed to
11:40 a.m. Eastern time. It's percent, to 7,921 after a 1.2 500 for the past four years 9.7 percent to $44.74. retaliate.
down 1 percent this week percent drop Wednesday. and are on track to do that Facebook, Twitter and Al- Representatives from the
after smaller losses Tuesday The Russell 20000 index of again this year. But over the phabet kept sinking as U.S. and Canada will con-
and Wednesday. The Dow smaller-company stocks last two days investors have well: Facebook retreated tinue their talks Thursday
Jones Industrial Average declined 8 points, or 0.5 sold high-flying technology 2.8 percent to $162.47 after a negotiating ses-
slipped 44 points, or 0.2 per- percent, to 1,719. stocks as investors turned while Twitter sank 3.9 per- sion that stretched into
cent, to 25,930. TECH SLUMP: Technology more cautious. Apple fell cent to $31.44 and Alpha- Wednesday night. They
are discussing a deal that
Average US mortgage rates tick up; 30-year at 4.54 percent would allow Canada to re-
main in an updated version
of the North American Free
Associated Press spite the strong economy. Trade Agreement.
WASHINGTON (AP) — Long- Home borrowing costs BOOKED A NEW ROOM:
term U.S. mortgage rates "may be slowly on the rise LaSalle Hotel Properties
ticked up this week for the again in coming weeks," said it accepted an offer
second straight week, re- said Freddie Mac chief from Pebblebrook Hotel
maining substantially high- economist Sam Khater. He Trust worth $37.80 in cash,
er than a year ago amid said the lack of affordable or $4.18 billion. LaSalle had
strength in the economy. homes "is hindering many agreed to be bought by
Mortgage buyer Freddie interested buyers this fall, investment firm Blackstone
Mac said Thursday the even as the robust econo- for $3.7 billion in May.
average rate on 30-year, my brings them into the mar-
fixed-rate mortgages rose ket." To calculate average
to 4.54 percent from 4.52 mortgage rates, Freddie
percent last week. Long- Mac surveys lenders across
term loan rates have been the country between Mon-
running at their highest day and Wednesday each
levels in seven years. The week. The average doesn't In this Thursday, Aug. 30, 2018, photograph, a sold placard tops
average benchmark 30- include extra fees, known a sale sign outside homes on the market in Denver.
year rate reached a high as points, which most bor- Associated Press
this year of 4.66 percent rowers must pay to get the
on May 24. By contrast, the lowest rates.
rate stood at 3.78 percent The average fee on 30-
a year ago. year fixed-rate mortgages
The average rate on 15- was unchanged from last
year, fixed-rate loans week at 0.5 point. The fee
edged up to 3.99 percent on 15-year mortgages fell
this week from 3.97 percent to 0.4 point from 0.5 point.
last week. The average rate for five-
Rising home prices, tight year adjustable-rate mort-
inventories of affordable gages jumped to 3.93 per-
homes and historically high- cent from 3.85 percent last
er mortgage rates have week. The fee remained at
dampened home sales de- 0.3 point.q