By Shreyashi Sanyal
Sept 4 (Reuters) – U.S. stocks fell on Tuesday, with Facebook leading a decline in the technology sector and Nike dragging on the Dow Jones Industrial index, setting a rough start for September as investors grappled with trade issues.
Facebook shares fell 2.8 percent, on track for their worst day since July 26, after brokerage MoffettNathanson downgraded the social media giant, warning of revenue growth deceleration.
Other internet stocks Alphabet, Twitter, Snap fell between 1.4 percent and 3.8 percent, while the S&P technology index dropped 0.50 percent.
Nike fell 2.7 percent as the company faced a backlash after it chose Colin Kaepernick, the first NFL player to kneel during the national anthem as a protest against racism, to participate in a new ad campaign.
The dip in the main indexes came after a strong August, with the Nasdaq posting its largest monthly gain since January.
“Since August was a good month for stocks, we are seeing some profit-taking and the headlines on China negotiations seem to be weighing a little bit as well,” said Sean O’Hara, president of Pacer ETFs in Paoli, Pennsylvania.
Consultations on a U.S. proposal for new tariffs on Chinese goods is set to end on Sept. 6, after which U.S. President Donald Trump can follow through on plans to impose levies on $200 billion more of Chinese imports, though it is unclear how quickly that will happen.
Talks between Canada and the United States to renegotiate the North American Free Trade Agreement (NAFTA) ended on a sour note on Friday, but officials set plans to resume their talks on Wednesday.
Amidst the gloom, Amazon’s shares rose as much as 1.9 percent