A slide in shares of technology giants weighed on the broader market Monday as investors grew wary of the potential for heightened regulation tied to the market’s most enduring winners.
The S&P 500 declined 25.07 points, or 0.7%, to 3799.61 after hitting a record on Friday. The tech-heavy Nasdaq Composite dropped 165.54 points, or about 1.3%, to 13036.43. The Dow Jones Industrial Average shed 89.28 points, or 0.3% to 31008.69.
Tech heavyweights underperformed the broader market as they slashed access to some of President Trump’s favorite megaphones after the storming of the Capitol by his supporters. The riot, planned and discussed on social media, is expected to spur Congressional efforts to regulate big tech. Facebook has indefinitely suspended President Trump, while Apple , Amazon.com and Alphabet ’s Google retracted support for the social-media app Parler.
Shares of Twitter fell $3.31, or 6.4%, to $48.17 on concern that the social-media company may face a backlash from regulators or users after it banned Mr. Trump’s personal account, citing the risk of further incitement of violence. Facebook shares lost $10.73, or 4%, to $256.84. Apple dropped $3.07, or 2.3%, to $128.98.
Stocks had rallied in recent days on bets that Congress will increase government spending, bolstering an economic recovery that stagnated recently.