Investing.com – U.S. stocks posted sharp losses after the open on Thursday, as shares in technology giant Cisco tumbled, leading markets lower and as investors focused on the 2-day Group of 20 world economic summit, which got underway in Seoul.
During early U.S. trade, the Dow Jones Industrial Average declined 0.95%; the S&P 500 index dropped 0.96%, while the Nasdaq Composite index tumbled 1.51%.
In earnings news, shares in the world’s largest maker of computer networking equipment Cisco Systems plunged 16.19% after it downgraded its full-year earnings outlook, despite recording a first-quarter profit of USD 1.93 billion, up from USD 1.79 billion a year earlier.
The company said it now expected full-year revenue to increase by 3% to 5% from a year earlier, missing analyst expectations of a 13% increase, citing a “challenging economic environment”, as well as a decline “in parts of our public sector, service provider, and European business”.
Elsewhere within the sector, shares in Broadcom tumbled 3.85%, while Texas Instruments saw shares fall 2.87%.
Meanwhile, shares in the financial sector underperformed, with lenders leading declines. Shares in global financial service provider JP Morgan Chase tumbled 1.62%, rivals Bank of America saw shares fall 1.27%, while shares in Citigroup declined 1.01%.
Elsewhere, shares in the largest U.S. aluminum producer Alcoa shed 0.79% after the stock was downgraded to “market perform”.
Meanwhile, across the Atlantic, European stock markets were down. The EURO STOXX 50 fell 0.82%, France’s CAC 40 tumbled 0.92%, Germany's DAX eased down 0.10%, and the FTSE 100 was down 0.27%.
On Thursday, G-20 leaders began a 2-day world economic summit amid growing concerns about trade imbalances and currency controls.
The summit was expected to be closely watched by investors following the Federal Reserve’s decision last week to buy its own debt to keep borrowing costs near zero, which attracted criticism from other G-20 leaders including Germany and China.
During early U.S. trade, the Dow Jones Industrial Average declined 0.95%; the S&P 500 index dropped 0.96%, while the Nasdaq Composite index tumbled 1.51%.
In earnings news, shares in the world’s largest maker of computer networking equipment Cisco Systems plunged 16.19% after it downgraded its full-year earnings outlook, despite recording a first-quarter profit of USD 1.93 billion, up from USD 1.79 billion a year earlier.
The company said it now expected full-year revenue to increase by 3% to 5% from a year earlier, missing analyst expectations of a 13% increase, citing a “challenging economic environment”, as well as a decline “in parts of our public sector, service provider, and European business”.
Elsewhere within the sector, shares in Broadcom tumbled 3.85%, while Texas Instruments saw shares fall 2.87%.
Meanwhile, shares in the financial sector underperformed, with lenders leading declines. Shares in global financial service provider JP Morgan Chase tumbled 1.62%, rivals Bank of America saw shares fall 1.27%, while shares in Citigroup declined 1.01%.
Elsewhere, shares in the largest U.S. aluminum producer Alcoa shed 0.79% after the stock was downgraded to “market perform”.
Meanwhile, across the Atlantic, European stock markets were down. The EURO STOXX 50 fell 0.82%, France’s CAC 40 tumbled 0.92%, Germany's DAX eased down 0.10%, and the FTSE 100 was down 0.27%.
On Thursday, G-20 leaders began a 2-day world economic summit amid growing concerns about trade imbalances and currency controls.
The summit was expected to be closely watched by investors following the Federal Reserve’s decision last week to buy its own debt to keep borrowing costs near zero, which attracted criticism from other G-20 leaders including Germany and China.