The US markets ended in red on Monday after a private report said China has introduced new guidelines to phase microprocessors from Intel and Advanced Micro Devices (AMD) out of government PCs and servers. Intel climbed well off its worst levels but still slumped by 1.7 percent, while AMD ended the day down by 0.6 percent. weakness among technology stocks weighed on the markets early in the session. Traders seemed reluctant to make more significant moves ahead of the release of some key economic data in the coming days. Traders were keep an eye on reports on durable goods orders, consumer confidence and pending home sales, although a report on personal income and spending that includes readings on inflation said to be preferred by the Fed will be released when the markets are closed for Good Friday.
On the economic data front, the Commerce Department released a report showing new home sales in the U.S. unexpectedly decreased in the month of February. The report said new home sales dipped by 0.3 percent to an annual rate of 662,000 in February after jumping by 1.7 percent to a revised rate of 664,000 in January. Street had expected new home sales to surge by 2.9 percent to a rate of 680,000 from the 661,000 originally reported for the previous month. On the sectoral front, despite the modest weakness shown by the broader markets, airline stocks showed a strong move to the upside on the day, with the NYSE Arca Airline Index climbing by 1.5 percent. Oil service stocks also saw considerable strength amid a sharp increase by the price of crude oil, driving the Philadelphia Oil Service Index up by 1.2 percent to a five-month closing high.
Dow Jones Industrial Average fell 162.26 points or 0.41 percent to 39,313.64, Nasdaq dropped 44.35 points or 0.27 percent to 16,384.47 and S&P 500 was down by 15.99 points or 0.31 percent to 5,218.19.
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