Masters of the Universe Crushed: Technology Shares Lead Stock Market Plunge

Two grizzly bears play in their pool at the zoo in La Fleche, northwestern France, on march 27, 2016. / AFP / JEAN-FRANCOIS MONIER (Photo credit should read JEAN-FRANCOIS MONIER/AFP/Getty Images)
JEAN-FRANCOIS MONIER/AFP/Getty Images

Players of the MMO video game Neverwinter know Fangbreaker Island as one of the toughest places to survive on the Sword Coast.

It might be a place investors should come to know after the stock market on Monday got stranded on FAANG-breaker Island.

The so-called FAANG tech stocks–Facebook, Apple, Amazon, Netflix, and Google’s Alphabet–included some of the hardest hit in Monday’s sharp market decline. Amazon fell by 5.21 percent following tweets from President Donald Trump on Monday over the weekend. Trump has been sharply critical of the company’s deal with the U.S. Post Office and other business practices.

Facebook shares were down 2.8 percent as the company struggled to produce a satisfactory response to criticism of its handling of user data. The company has lost $83 billion in market value since mid-march. Google’s Alphabet, whose own data collection has come under fire in the wake of the Facebook scandal, fell 2.4 percent.

Shares of Netflix, Inc., which is not directly involved in any of the big news stories, suffered nonetheless. They were down 5.1 percent on Monday afternoon.

Snap’s stock fell 8.9 percent Monday. Intel plunged 6.1 percent after Bloomberg reported that Apple would start to use its own chips in its Mac personal computers.

All this tech carnage made Apple look quite shiny, with a decline of just 0.66 percent.

Investors are concerned that the technology stocks will face more regulation, or perhaps even be broken up, in the near-term future.

The Dow Jones Industrial Average were off by around 700 points, or around 3 percent, before an end of the day recovery of nearly 300 points. The Dow ended down by around 500 points, or 1.9 percent. The S&P 500 fell by 2.3 percent, after recovering from a decline of around 3 percent. The Nasdaq Composite was off by 3.4 percent before recovering to end down 2.74 percent.

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