The Nasdaq is headed for its lowest close in 6 months as FAANG stocks tumble

The Nasdaq is headed for its lowest close in 6 months as FAANG stocks tumble

Traders work on the floor of the New York Stock Exchange shortly after the opening bell in New York, U.S., February 15, 2018.  REUTERS/Lucas Jackson/File PhotoThomson Reuters

Stocks fell sharply Monday, dragged lower by mega-cap technology companies, as Wall Street worried about global growth and trade tensions amid a quiet week for economic data.

The tech-heavy Nasdaq 100 index plummeted more than 3.3%. It’s currently on pace for it’s lowest close since the beginning of May, having fallen almost 13% since reaching a record on Aug. 29.

Meanwhile, the S&P 500 fell 1.7% and the Dow Jones Industrial Average shed 1.9%, or nearly  500 points.

Apple dropped about 3.8% after the Wall Street Journal reported the company slashed production orders in recent weeks for all three of its new iPhones unveiled in September.

iPhone suppliers, including Lumentum Holdings Inc. (-6.2%) and Universal Display Corp (4.1%), were also hit amid worries about faltering demand. Shares of the world’s biggest technology company are down more than 10% this month.

Other FAANG stocks took a beating, with Amazon down about 4.8% and Netflix about 5.3% lower. Facebook shed 5.4%, and Google-parent company Alphabet fell 3.5%.

Semiconductor companies extended sharp declines from last week when Nvidia (-9.7%) posted revenue and guidance that missed analyst expectations. Advanced Micro Devices (-7.2%), Cypress (3.2%) and NXP Semiconductors (3.1%) were among losers in the sector.

Trade tensions continued to weigh on global markets after the US and China clashed at a summit in Papua New Guinea over the weekend, blocking a declaration at the annual Asia Pacific Economic Cooperation for the first time in nearly three decades. President Donald Trump and Chinese leader Xi Jinping are expected to meet at a G20 gathering in Argentina on Nov. 30 and Dec. 1.

“Comments on US-China trade tensions are likely to remain in focus this week ahead of the G20 Summit at the end of the month,” Vince Heaney, a strategist at UBS, said in an email.

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