US close: Markets finish lower as tech stocks take a beating
Wall Street finished the first session of the week weaker, as technology shares faced steep selling pressure amid fresh worries tied to Facebook's policies over user data management emerged.
Investors were also looking to the latest policy announcement and expected rate hike from the Federal Reserve on Wednesday.
The Dow Jones Industrial Average finished down 1.35% at 24,610.91, the S&P 500 was off 1.42% at 2,712.92, and the Nasdaq 100 slid 2.21% to 6,864.88.
Facebook shares dropped 6.77% - its worst daily decline in almost two years - cutting its market capitalisation to $537.67bn.
The sell-off came after reports over the weekend that shadowy data firm Cambridge Analytica managed to acquire information on more than 50 million users of the social media platform, and used it to conduct micro-targeted political campaigns thought to have contributed to the election of Donald Trump and the UK's Brexit vote.
On top of that, news broke during the morning that US Senators Amy Klobuchar and John Kennedy had issued a joint call to Senate Judiciary Committee chairman Chuck Grassley asking for a hearing with the chief executives of Facebook, Google and Twitter on their use of client data.
“The latest data scandal might well be the straw that breaks the camel’s back for tighter industry regulation,” said Jasper Lawler at LCG.
“Tighter regulation of how data is collected and used will inevitably curb growth for tech and social media companies that use the data to attract advertisers.
“Reports that Apple is secretly developing its own micro LED screens for the iPhone has hurt the share prices of existing parts suppliers, notably in Asia.”
Traders were also keeping a close eye on the two-day G20 finance ministers meeting that kicked-off earlier on Monday, in Buenos Aires.
As far as the Fed's latest interest rate decision due on Wednesday was concerned, with a rate hike expected, analysts said the main focus was likely to be on what the dot plot suggested the Fed might do going forward.
Rabobank said much would be read into Fed chair Jerome Powell's interpretation of the economic outlook and how he chooses to address the fact that the Fed still remains some way from reaching its inflation goals.
In other corporate news, Bloomberg reported that Apple was secretly developing its own micro-LED technology to equip displays on its electronic devices - news that sent shares in Asian display manufacturers, including Samsung Electronics and Japan Display, south during the Asian session.
Shares in the Cupertino-based technology giant finished the day down 1.53%, however.
Newell Brands stock dropped 6.52% after saying it would appoint four directors to its board picked by billionaire investor Carl Icahn.
Icahn revealed on Friday that he had taken a 6.9% stake in the Sharpie pen maker.
Elsewhere, Dana eked out gains of 0.11% after upping its 2018 sales outlook to between $7.75bn and $8.05bn and its adjusted earnings per share guidance to between $2.75 and $3.05.
Chip equipment manufacturer KLA-Tencor lost 3.85% after confirming it had forked out $3.4bn for Israeli outfit Orbotech in a cash and shares deal that implied a 15% premium.
The day was quiet on the economic front, with no major data releases scheduled.
Dow Jones - Risers
Boeing Co. (BA) $331.77 0.39%
Nike Inc. (NKE) $65.71 -0.30%
Procter & Gamble Co. (PG) $78.66 -0.39%
Coca-Cola Co. (KO) $43.26 -0.46%
Verizon Communications Inc. (VZ) $48.31 -0.51%
Intel Corp. (INTC) $50.83 -0.66%
JP Morgan Chase & Co. (JPM) $114.53 -0.79%
American Express Co. (AXP) $94.84 -0.81%
United Technologies Corp. (UTX) $127.20 -0.88%
Travelers Company Inc. (TRV) $140.02 -0.92%
Dow Jones - Fallers
Caterpillar Inc. (CAT) $152.18 -2.75%
Johnson & Johnson (JNJ) $130.24 -2.57%
3M Co. (MMM) $231.56 -2.39%
McDonald's Corp. (MCD) $159.01 -2.06%
Dowdupont Inc. (DWDP) $66.56 -2.06%
Walmart Inc. (WMT) $87.45 -1.93%
Goldman Sachs Group Inc. (GS) $262.54 -1.89%
Merck & Co. Inc. (MRK) $54.63 -1.87%
International Business Machines Corp. (IBM) $157.38 -1.83%
Microsoft Corp. (MSFT) $92.89 -1.81%
S&P 500 - Risers
Tenet Healthcare Corp. (THC) $25.12 2.03%
Signet Jewelers Ltd (SIG) $39.46 2.02%
First Solar Inc. (FSLR) $71.26 1.99%
Northrop Grumman Corp. (NOC) $344.93 1.86%
Gap Inc. (GPS) $32.22 1.51%
Macy's Inc. (M) $29.30 1.38%
Lockheed Martin Corp. (LMT) $335.25 1.16%
Kansas City Southern (KSU) $106.71 1.14%
Carnival Corp. (CCL) $67.63 1.08%
Teradata Corp. (TDC) $42.45 1.05%
S&P 500 - Fallers
AFLAC Inc. (AFL) $44.69 -50.60%
Frontier Communications Co. (FTR) $7.00 -8.50%
Facebook Inc. (FB) $172.56 -6.77%
Newell Brands Inc (NWL) $26.79 -6.52%
Mallinckrodt Plc Ordinary Shares (MNK) $15.20 -5.53%
Mattel Inc. (MAT) $13.22 -4.62%
Newfield Exploration Co (NFX) $23.16 -4.57%
Endo International Plc (ENDP) $6.71 -4.28%
Hess Corp. (HES) $46.96 -4.12%
Express Scripts Holding Co (ESRX) $72.99 -3.99%
Nasdaq 100 - Risers
Seagate Technology Plc (STX) $60.40 0.52%
Ross Stores Inc. (ROST) $77.04 0.38%
J.B. Hunt Transport Services Inc. (JBHT) $120.19 -0.09%
Cintas Corp. (CTAS) $172.99 -0.17%
Check Point Software Technologies Ltd. (CHKP) $103.37 -0.21%
Henry Schein Inc. (HSIC) $67.83 -0.32%
Biomarin Pharmaceutical Inc. (BMRN) $83.82 -0.33%
CSX Corp. (CSX) $56.69 -0.40%
Asml Holdings N.V. (ASML) $212.75 -0.61%
Citrix Systems Inc. (CTXS) $94.53 -0.63%
Nasdaq 100 - Fallers
Facebook Inc. (FB) $172.56 -6.77%
Liberty Interactive Corporation QVC Group (QRTEA) $26.35 -4.25%
Incyte Corp. (INCY) $86.27 -4.18%
Express Scripts Holding Co (ESRX) $72.99 -3.99%
Broadcom Limited (AVGO) $244.95 -3.89%
KLA-Tencor Corp. (KLAC) $115.98 -3.85%
Nvidia Corp. (NVDA) $241.00 -3.78%
Alexion Pharmaceuticals Inc. (ALXN) $122.03 -3.72%
QUALCOMM Inc. (QCOM) $58.37 -3.71%
Baidu Inc. (BIDU) $252.83 -3.64%