Tech stocks are getting slammed, Dow tanks more than 500 points

  • Stocks were lower Monday for a third straight day.
  • Technology was pressured amid worries of slowing iPhone demand.
  • Oil gained as Saudi Arabia signaled it would cut production in December.

Stocks fell for a third straight day Monday, with technology leading the way lower amid worries about waning iPhone demand.

The Nasdaq Composite fell 2.4%, while the Dow Jones Industrial Average was lower by 2%, or more than 500 points. The S&P 500 shed 1.6%.

Apple sank 4.5% Monday after the facial-recognition supplier Lumentum cut its outlook, prompting worries of slowing demand for the iPhone.

Chipmakers were hit especially hard, with AMD shedding 8.7% while Nvidia and Intel lost 7.5% and 2.7%.

Elsewhere, tobacco stocks were pressured after The Wall Street Journal reported late Friday that the US Food and Drug Administration was considering a ban on menthol cigarettes. British American Tobacco slumped as much as 9.9% in London, and Altria was down 2.9% in New York.

RELATED: Check out the floor reactions to the stock market plunge in February 2018: 

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Floor reactions to stock market plunge
A trader looks at a screen that displays the Dow Jones Industrial Average on the floor of the New York Stock Exchange, (NYSE) in New York, U.S., February 5, 2018. REUTERS/Brendan McDermid
Traders work on the floor of the New York Stock Exchange (NYSE) in New York, U.S., on Monday, Feb. 5, 2018. U.S. stocks plunged, sending the Dow Jones Industrial Average down almost 1,600 points, as major averages erased gains for the year.�Photographer: Michael Nagle/Bloomberg via Getty Images
A trader works on the floor at the closing bell of the Dow Industrial Average at the New York Stock Exchange on February 5, 2018 in New York. Wall Street stocks endured a brutal session Monday, with the Dow seeing one of its steepest ever one-day point drops, as the heady bullishness of early 2018 gave way to extreme volatility. / AFP PHOTO / Bryan R. Smith (Photo credit should read BRYAN R. SMITH/AFP/Getty Images)
Traders work on the floor of the New York Stock Exchange (NYSE) in New York, U.S., on Monday, Feb. 5, 2018. U.S. stocks plunged, sending the Dow Jones Industrial Average down almost 1,600 points, as major averages erased gains for the year.�Photographer: Michael Nagle/Bloomberg via Getty Images
A monitor displays stock information on the floor of the New York Stock Exchange (NYSE) in New York, U.S., on Monday, Feb. 5, 2018. U.S. stocks plunged, sending the Dow Jones Industrial Average down almost 1,600 points, as major averages erased gains for the year.�Photographer: Michael Nagle/Bloomberg via Getty Images
NEW YORK, NY - FEBRUARY 05: Traders work on the floor of the New York Stock Exchange (NYSE) on February 5, 2018 in New York City. Following Fridays's over 600 point drop, the Dow Jones Industrial Average briefly fell over 1500 points in afternoon trading. (Photo by Spencer Platt/Getty Images)
Traders work on the floor of the New York Stock Exchange (NYSE) in New York, U.S., on Monday, Feb. 5, 2018. U.S. stocks plunged, sending the Dow Jones Industrial Average down almost 1,600 points, as major averages erased gains for the year.�Photographer: Michael Nagle/Bloomberg via Getty Images
NEW YORK, NY - FEBRUARY 05: Traders work on the floor of the New York Stock Exchange (NYSE) on February 5, 2018 in New York City. Following Fridays's over 600 point drop, the Dow Jones Industrial Average briefly fell over 1500 points in afternoon trading. (Photo by Spencer Platt/Getty Images)
NEW YORK, NY - FEBRUARY 05: Traders work on the floor of the New York Stock Exchange (NYSE) on February 5, 2018 in New York City. Following Fridays's over 600 point drop, the Dow Jones Industrial Average briefly fell over 1500 points in afternoon trading. (Photo by Spencer Platt/Getty Images)
NEW YORK, NY - FEBRUARY 05: Traders work on the floor of the New York Stock Exchange (NYSE) on February 5, 2018 in New York City. Following Fridays's over 600 point drop, the Dow Jones Industrial Average fell over 300 points after the Opening Bell. (Photo by Spencer Platt/Getty Images)
NEW YORK, NY - FEBRUARY 05: Traders work on the floor of the New York Stock Exchange (NYSE) on February 5, 2018 in New York City. Following Fridays's over 600 point drop, the Dow Jones Industrial Average fell over 300 points after the Opening Bell. (Photo by Spencer Platt/Getty Images)
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And General Electric plunged to a post-financial-crisis low of $7.72 a share after CEO Larry Culp appeared on CNBC and said he was looking at selling assets to reduce leverage.

On the earnings front, the marijuana producer Aurora Cannabis announced a big jump in revenue and profit, but the stock slid 2.8%.

And in deal news, the German database giant SAP announced it would buy the experience-management startup Qualtrics for $8 billion. That news came just days before Qualtrics was expected to go public at a valuation of more than $5 billion. Meanwhile, the private-equity firm Veritas Capital and the hedge fund Elliott Management reached an all-cash deal to purchase the US healthcare software maker Athenahealth for about $5.7 billion, a 12% premium to where shares closed Friday.

Elsewhere, the Saudi energy minister, Khalid al-Falih, told reporters the kingdom was ready to cut oil production by 500,000 barrels a day in December. West Texas Intermediate crude oil, the US benchmark, and Brent Crude oil, the international benchmark, rallied sharply before President Donald Trump sent prices lower with a tweet.

"Hopefully, Saudi Arabia and OPEC will not be cutting oil production," he said. "Oil prices should be much lower based on supply!"

The US Treasury market was closed in observance of Veterans Day.

SEE ALSO: 10 things you need to know before the opening bell (SPY, SPX, QQQ, DIA, WYNN, SAP, BABA, BAT) »

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