Market Overview

The Latest Tech Wreck Sends Markets Lower; S&P 500, Nasdaq Close In Correction Territory

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The Latest Tech Wreck Sends Markets Lower; S&P 500, Nasdaq Close In Correction Territory

Market turmoil continued Monday.

The Dow Jones Industrial Average fell 245 points in Monday's session, and at one point was down nearly 560 points before coming back at the close. The sell-off brings the total decline in the index to about 9 percent from its Oct. 3 highs. A correction is generally defined as a 10 percent or greater decline in the price from its most recent peak.

More Trade Fears

Bloomberg reported the U.S. is preparing to announce tariffs on all remaining Chinese imports if talks next month between presidents Donald Trump and Xi Jinping fail to ease the ongoing trade war.

  • The Dow closed down 245 points (1 percent) at 24,443.26.
  • The S&P 500 closed down 26 points (1 percent) at 2,632.67.
  • The Nasdaq Composite closed down 116 points (1.6 percent) at 7,050.29.

"Major indexes are on course to end October with their biggest one-month loss in years, hurt by growing worries about the health of the global economy, as well as broader concerns about tightening monetary policy," Wall Street Journal's Riva Gold and Akane Otani reported.

“I think in order to actually renew leadership and faith in the market, you’ve got to see more strength in growth stocks,” said Patrick Spencer, vice chairman of equities at Baird. “Bear markets are almost always associated with recession, and I just don’t see it on the horizon."

Tech Wrecked

Tech stocks took a brutal hit Monday.

"The market will not reward earnings unless you've got growth in the top line, bottom line and guidance. It can be brutal for companies that don't hit all those marks," CNBC quoted Quincy Krosby, chief market strategist at Prudential Financial, as saying. "There are questions remaining on whether this market can really regain strength if tech doesn't lead."

Here's a look at some of notable tech wrecks Monday:

  • Amazon.com, Inc. (NASDAQ: AMZN) closed down 6.3 percent to $1,538.88. The stock has been under pressure all month, accelerated by last week's mixed earnings report.
  • Apple Inc (NASDAQ: AAPL) down 1.8 percent at $212.24. Apple is expected to release Q4 earnings Thursday afternoon.
  • Facebook Inc (NASDAQ: FB) down 2.2 percent at $142.09. Facebook reports Q3 earnings Tuesday afternoon.
  • Netflix, Inc. (NASDAQ: NFLX) down 5 percent at $284.84.

Boeing Co (NYSE: BA) almost took a major hit, falling 6.6 percent to $335.59

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