Concern as Wall Street plunges and technology giants stumble

US STOCKS plunged to their worst loss in eight months as technology companies continued to drop.

The losses were widespread, and stocks that have been the biggest winners on the market over the last few years, including technology companies and retailers, suffered steep declines. Apple and Amazon both had their worst day in two-and-a-half years.

The Dow Jones Industrial Average fell 831 points.

The Nasdaq composite, which has a high concentration of technology companies, had its biggest loss in more than two years.

Alec Young, managing director of global markets research at FTSE Russell, said investors fear that rising interest rates and growing expenses are going to erode company profits next year.

Others worry that the boost to the economy from President Donald Trump’s tax cuts is a oneoff that cannot be repeated and that the impact has started to wear off.

The S&P 500 index sank 94.66 points, or 3.3 per cent, to 2,785.68. The benchmark index fell for the fifth straight day, which had not happened since just before the 2016 presidential election.

The Nasdaq composite tumbled 315.97 points, or 4.1 per cent, to 7,422.05. It has fallen 7.5 per cent in just five days.

The Dow Jones Industrial Average gave up 831.83 points, or 3.1 per cent, to 25,598.74.

After a long stretch of relative calm, the stock market has suffered sharp losses over the last week as bond yields surged.

Technology and internetbased companies are known for high profit margins and explosive growth, but stocks have become more volatile recently.