Dow plunges about 400 points as Apple, Amazon and Facebook fall
Stocks dropped sharply on Monday as the biggest and most popular technology stocks plunged. Facebook and Apple led the losses.
The Dow Jones Industrial Average fell 395.78 points to 25,017.44. The S&P 500 dropped 1.7 percent to 2,690.73 as the technology sector pulled back 3.8 percent. The tech-heavy Nasdaq Compositelagged, falling 3 percent to close at 7,028.48 as Amazon dropped 5.1 percent.
The popular "FAANG" trade made up of Facebook, Amazon, Apple, Netflix and Alphabet is now in a bear market with each member down more than 20 percent from their one-year highs.
"It's going to require a recovery in tech to make things happen," said Greg Luken, CEO of Luken Investment Analytics. "I think where we are in tech, we're going to see tough sledding towards the end of the year. I think stocks that are down will see further selling pressure."
Apple led tech shares lower after The Wall Street Journal reported the company has cut production orders for the new iPhones unveiled earlier this year. The company's stock fell nearly 4 percent and fell back into a bear market, down 20 percent from its 52-week high.