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Spencer Platt | Getty Images News | Getty Images
NEW YORK, NY – NOVEMBER 13: Traders work on the floor of the New York Stock Exchange (NYSE) on November 13, 2018, a day after the fall of the Dow Jones Industrial Average of 600 points due to concerns about profits of the companies of increasing commercial warfare.
"This seems to be a lingering concern as to what triggered the decline in October, which is the concern of an economic slowdown," said Craig Callahan, president of Icon Funds. "I think these people are wrong, but they have control right now."
Stocks also fell, as members of the popular "FAANG" trade, consisting of Facebook, Amazon, Apple, Netflix and Alphabet, fell back further into the bear market. Facebook dropped by 0.9%, while Amazon, Apple and Netflix all lost at least 3%. The stock of the alphabet plunged 1.4%. Together, these stocks have lost more than $ 1 trillion in market value since their 52-week high.
On Monday, FAANG members all closed at least 20% of their one-year high, pushing for key clues. The S & P 500 and Nasdaq fell 1.7% and 3% respectively, while the Dow fell 1.6%.
"An unexpected short-term weakness in the technology sector could have a significant impact on the global economy, adding to what already looks like a more soggy macro environment," said Dario Perkins, general manager of the global macro at TS Lombard, in a note. "Downsizing in the FAANG could also undermine the broader US stock market."
Apple has led the charge down for the shares of FAANG, investors worried that sales of its flagship product, the iPhone, will slow down. More recently, Goldman Sachs reduced its price target on Apple on Tuesday, noting that "in addition to weak demand for Apple products in China … it also seems that the price and features balance of the iPhone XR may not be satisfactory "-received."
Meanwhile, Facebook is in sharp decline in reaction to the company's reaction to the use of the platform by foreign entities to disrupt the 2016 US election.
Boeing shares fell more than 3% Tuesday after the company canceled a conference call with airlines to discuss the 737 MAX model systems. Last month, a 737 MAX sank and killed the 189 people on board.
-CNBC & # 39; s
Spriha Srivastava
contributed to this report.
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