Major technology companies saw their shares fall sharply yesterday, leading a broad market selloff that dragged the Dow more than 800 points lower.
The S&P 500 Information Technology sector was down 4.77 percent, marking its worst day in seven years. It was also the worst performer among all 11 S&P sectors. Meanwhile, the tech-heavy Nasdaq Composite dropped 4.08 percent, its steepest loss since June 24, 2016.
Amazon lost nearly 6.2 percent of its value in the selloff. The stock has now entered correction territory – defined as a 10 percent drop from their 52-week high. The e-commerce giant is down more than 13 percent from its closing record of $2,039.51 set Sept. 4.
Apple, Facebook and Google recorded declines of more than 4 percent on the day, while Microsoft fell 5.4 percent. Chipmaker Nvidia suffered a 7.5 percent decline. Rival AMD dropped 8.2 percent.
Amazon, Apple, Microsoft and other tech names are still higher on the year. The Nasdaq clinched a record closing high Aug. 29 when it settled at 8,109.69.
The tech sector’s retreat Wednesday came amid steep declines in all three major stock indexes, driven by investors’ concerns over rising interest rates and corporate earnings.
The Dow Jones Industrial Average plunged 831.83 points, or 3.15 percent, to 25,598.74. Apple, Boeing, 3M, Goldman Sachs and UnitedHealth contributed 350 points to the blue-chip index’s decline. The broader S&P 500 slipped 3.29 percent to 2,785.68.
Stocks have recently soared to fresh records, responding in part to a new trade deal between the U.S., Canada and Mexico. The Dow registered a new all-time high last week and came within 50 points of the 27,000 milestone.