Stocks fall as tech retreats

Price of oil hits 7-year high

Technology companies led a broad slide for stocks on Wall Street Monday, as rising bond yields and energy prices stoked investors’ concerns about higher inflation.

The S&P 500 fell 1.3 percent, the Dow Jones Industrial Average dropped 0.9 percent and the tech-heavy Nasdaq lost 2.1 percent.

The price of oil hit a sevenyear high as OPEC and allied oil producers stuck with a plan to cautiously raise production even as global demand for crude oil increases.

Treasury yields, which moved sharply higher last week, rose again. The recent jump has contributed to weakness in technology stocks. Apple fell 2.5 percent and Microsoft dropped 2.1 percent.

Big communication companies also fell. Facebook slid 4.9 percent a day after a former employee told “60 Minutes” that the company has consistently chosen its own interests over the public good. The social network and its Instagram and WhatsApp platforms also suffered a worldwide outage that began around midmorning on Monday.

“What you’re seeing today is those areas — the expensive, growth technology type of areas — that had led over the past few months as interest rates remained low are now reversing as you’re seeing interest rates move higher,” said Megan Horneman, director of portfolio strategy at Verdence Capital Advisors.

The S&P 500 fell 56.58 points to 4,300.46. The decline follows the benchmark index’s worst week since winter and a 4.8 percent pullback for September, the S&P 500’s first monthly loss since January.

The Dow Jones Industrial Average dropped 323.54 points to 34,002.92. The Nasdaq lost 311.21 points to 14,255.48.

Small company stocks also fell. The Russell 2000 index gave up 24.16 points, or 1.1 percent, to 2,217.47.

U.S. crude oil prices rose 2.3 percent and topped $77 per barrel for the first time since 2014. OPEC and allied oil producing countries on Monday decided to stay with their cautious approach to restoring oil production slashed during the pandemic, agreeing to add 400,000 barrels per day in November.

Natural gas prices jumped 2.6 percent. Energy companies rose along with energy prices.