Sudden big-tech sell-off continues

Nasdaq tumbles 10% since setting its latest record last week.

NEWYORK— Big technology stocks tumbled again Tuesday, continuing the Icarus-like flight path for companies that just a week ago were the high flyers carrying Wall Street to record heights.

The S&P 500 fell 95.12, or 2.8%, to 3,331.84 and clinched its first three-day losing streak in nearly three months. Big names that were the main reasons for the market’s rocket ride back from its pandemic-caused losses were among the heaviest weights. Apple sank 6.7%, Microsoft pulled 5.4% lower and tech stocks across the index were down 4.6%.

The Dow Jones Industrial Average lost 632.42 points, or 2.2%, to 27,500.89. The Nasdaq composite, which is packed with tech stocks, dropped 465.44, or 4.1%, to 10,847.69 and is down 10% since it set its latest record on Wednesday.

Tech stocks had been the darlings of Wall Street on expectations that they can continue to deliver strong profit growth almost regardless of the economy and global health. Tech stocks in the S&P 500 are still up nearly 23% for 2020 so far, even when unemployment remains high and much of the economy is limping ahead.

Critics have long been saying that big technology stocks had shot too high, even after accounting for their strong profit growth.

Energy stocks had some of Wall Street’s sharpest drops as the price of oil tumbled. Apache lost 10.7%, and Diamondback Energy fell 10% after benchmark U.S. crude sank $3.01 to $36.76 per barrel. But the market’s losses were widespread, with nearly 90% of the stocks in the S&P 500 lower.