New York stocks slid on Monday with technology stocks leading the way after an Asia Pacific Economic Co-operation meeting this weekend highlighted the trade tensions between the U.S. and China.
The Dow was down 1.6 per cent at 24,996 and the Nasdaq fell 2.7 per cent to 7,241 by mid-afternoon.
In Toronto, concern over energy pulled the market lower as the low price of oil and difficulties of getting Canadian crude to market weighed on the index. The TSX was down 105 points at 15,049, wiping out gains made last week.
West Texas Intermediate, the benchmark North American crude contract, held firm at $56.90 US a barrel. But the Western Canada Select contract is at $17.70 because of a glut of oil and lack of pipeline capacity.
Today Alberta Premier Rachel Notley announced she has asked three “special envoys” to work with energy sector experts and CEOs to find solutions for closing the oil-price differential.
The health care sector, including major marijuana companies, also lost ground in Toronto.
On the U.S. markets, Apple stock fell four per cent after the company cut production orders for three iPhone models it released in September.
Facebook and other social media stocks were under pressure because of continued controversy over their role in Russia’s meddling with U.S. elections.
But a lot of the pessimism centred around the isolationist stance of the U.S. on trade issues, which could result in depressed global demand for tech products.
U.S. vice-president Mike Pence represented the U.S. at the APEC summit, usually a non-controversial forum for advancing trade. Instead, he and Chinese President Xi Jinping gave speeches full of veiled criticism of each other, and the summit ended without a communique.
China and the U.S. are engaged in a tariff war, escalating duties on one another’s goods in defiances of world trade rules. That threatens to disrupt global supply chains, especially for the tech giants.