The Nasdaq today made a new low as the composite and other major indexes traded near session lows.
XThe Nasdaq composite undercut its Nov. 20 low, ending a once-promising rally. The Nasdaq erased a 1.5% drop and for a while showed a minor gain. But in afternoon trading, the composite was off 0.9%.
The S&P 500 and the Dow Jones industrial average were both down more than 1% on the stock market today. Small caps sank in line with the rest of the market, off 0.8% on the Russell 2000. The small-cap benchmark is now 20% below its prior high, a drop that typically defines a bear market.
Volume was tracking higher compared with the same time Friday. Declining stocks led advancers by a 2-1 ratio on the Nasdaq and by nearly 10-to-3 on the NYSE.
Ruling Rattles Health Care
Health care was one of the weakest sectors after a federal judge on Friday struck down ObamaCare as unconstitutional. The case is headed to appeal and likely will face another test before the U.S. Supreme Court.
Health insurance, outpatient care, hospitals and medical software — industry groups particularly affected by ObamaCare — were among Monday's worst performing.
UnitedHealth Group (UNH), the nation's largest provider of health coverage, reduced its loss to 1% and is trading below the 50-day moving average.
Adding to the sector's woes, Johnson & Johnson (JNJ) continued to drop. It is now 12% below its prior high. J&J plunged 10% Friday after Reuters reported the company knew for years that its talcum powder contained asbestos. J&J said its talcum powder is safe. J&J triggered a sell signal after falling more than 8% below its 143.23 buy point.
Dow component Goldman Sachs (GS) fell to the lowest price since October 2016 as it expands its worst decline since 2011. Malaysian authorities charged Goldman subsidiaries and at least one former banker with misappropriating funds in bond deals arranged for beleaguered state investment fund 1MDB.
Several software industry groups and online retailing, travel booking and railroads also were down more than most groups.
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