US stocks tumble as tech rout continues
US stocks plunged on Tuesday as investors continued to rotate out of the tech sector.
The Dow Jones Industrial Average dropped 632.42 points, or 2.25 per cent, to end at 27,500.89. The S&P 500 sank 95.12 points, or 2.78 per cent, to 3,331.84. The Nasdaq Composite Index shed 465.44 points, or 4.11 per cent, to 10,847.69, Xinhua reported.
Shares of major US tech giants, or the so-called FAANG group of Facebook, Apple, Amazon, Netflix and Google-parent Alphabet, all closed noticeably lower.
Tesla shares slumped more than 21 per cent, weighing on the Nasdaq. The tech-heavy index pulled back 10 per cent over the past three sessions.
All the 11 primary S&P 500 sectors dropped, with technology down 4.59 per cent, leading the losses.
US-listed Chinese companies traded lower, with all the top 10 stocks by weight in the S&P US Listed China 50 index ending the day on a downbeat note.
The moves came after Wall Street’s worst tech rout since March in the previous week.
The S&P 500 tech sector fell 5.83 per cent on Thursday, notching its biggest one-day loss since March, and the group sank 1.34 per cent further on Friday.
For the week ending Friday, the Dow declined 1.8 per cent, the S&P 500 lost 2.3 per cent, and the tech-heavy Nasdaq dipped 3.3 per cent.
US financial markets were closed on Monday in observance of Labor Day.