The Nasdaq is headed for its lowest close in 6 months as FAANG stocks tumble
- Stocks fell Monday, dragged lower by technology companies.
- The Wall Street Journal reported Apple slashed its production orders.
- Follow the US indices in real time here.
Stocks fell 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 2.5%. 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 1.3% and the Dow Jones Industrial Average shed 1.3%, or more than 300 points.
Apple dropped more than 3% 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. (-5.6%) and Universal Display Corp (-2.6%), 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 more than 3.5% and Netflix about 4.5% lower. Facebook shed 4.6%, and Google-parent company Alphabet fell 2.5%.
Semiconductor companies extended sharp declines from last week when Nvidia (-8%) posted revenue and guidance that missed analyst expectations. Advanced Micro Devices (-4.7%), Cypress (3%) and NXP Semiconductors (1.5%) 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.