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.

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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.

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