A broad slide on Wall Street led by technology companies as investors shifted out of technology stocks in the face of rising Treasury yields, while fresh US-China concerns over trade offered another reason for caution. All three main indexes on Wall Street ended deep in the red, led by the Nasdaq, as tech firms took a beating owing to their susceptibility to higher interest rates.
Apple Inc. slipped into correction territory, making it the third of the five megacap tech companies to fall more than 10% from peaks earlier this year.
Apple shares fell as much as 3% on Monday amid another wave of selling in the shares of faster growing companies with higher valuations that are facing pressure from rising US Treasury yields. The iPhone maker’s shares have now fallen 11% from a Sept. 7 record, erasing about $300 billion in market value.
Facebook Inc. and Amazon.com among technology stocks that have fallen more than 10% from peaks. Amazon.com Inc. shares fell sharply on Monday, with the e-commerce giant falling back into negative territory for the year. The stock fell 2.9% in its sixth straight daily decline, the longest such streak since an eight-day drop that ended in August 2019.
Facebook, which plunged on the back of global outages across its family of apps, is down 15% from a record earlier this month. Amazon.com has dropped 14% from a July high.
The closely watched NYFANG+ index — which includes 10 highly liquid tech and internet stocks — is down more than 9% from a September 7 peak. Tesla Inc. is the only stock in the black during that period.
(With inputs from agencies)
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