“Stocks fell on Monday, dragged lower by the basic materials and energy sectors after China, the world’s second-largest economy, cut its growth target for 2012,” Rodrigo Campos reports for Reuters
“China lowered its 2012 target to an eight-year low of 7.5 percent and made ‘expanding consumer demand’ its top priority as Beijing looks to shrink the economy’s reliance on external spending and foreign capital,” Campos reports. “Materials shares, sensitive to signs of slowing in China’s commodity-hungry economy, dropped and were the biggest drag on Wall Street… The Dow Jones industrial average (DJI:DJI) fell 55.85 points, or 0.43 percent, to 12,921.72. The S&P 500 Index (IOM:INX) dropped 8.14 points, or 0.59 percent, to 1,361.49. The Nasdaq Composite (NAS:COMP) lost 28.11 points, or 0.94 percent, to 2,948.08. The S&P 500 dipped below its 14-day moving average, a line it has held for the last 50 sessions in an impressive run.”
Campos reports, “The Nasdaq came under pressure from iPhone and iPad maker Apple Inc , whose shares tumbled to a session low of $526 in late morning trading on heavy volume. At midday, Apple had retraced some of that loss, but the stock was still down 1.5 percent at $536.99.”
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