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Apple, FANG stocks push Nasdaq composite lower

FANG (Facebook, Amazon, Netflix and Google) apps on a smartphone.
Adam Jeffery | CNBC
FANG (Facebook, Amazon, Netflix and Google) apps on a smartphone.

Thursday was was not a good day for technology stocks.

Shares of tech giant Apple dropped 2.79 percent, while the so-called FANG stocks (Facebook, Amazon, Netflix and Google parent Alphabet) all dropped at least 1.93 percent, with Amazon shedding 3.82 percent. Apple, Facebook, Amazon and Netflix also fell into correction territory, or down at least 10 percent from their 52-week high.

The drop in these stocks led to a momentary 2 percent dip in the tech-heavy Nasdaq, which closed 0.81 percent lower.

Peter Boockvar, chief market analyst at The Lindsey Group, said the prospect of higher interest rates is pressuring tech stocks, particularly the FANGs. These stocks "don't like higher interest rates because higher interest rates exposes things that are overvalued," he said.

The Federal Reserve is scheduled to meet next month and is largely expected to raise interest rates by 25 basis points.

Regarding Apple, analysts at Baird said in a note Wednesday that "meaningful changes in global trade policies could have a negative impact" following Republican Donald Trump's surprising victory over Hillary Clinton. Baird also said that "with $238 billion of cash and equivalents, and 91% of that overseas, Apple could be one of the biggest beneficiaries of a potential cash repatriation tax holiday or change in corporate tax rates."

Apple 12-month chartSource: FactSet