Big tech’s drag on the market may soon ramp up

The dominant market theme over the past month has been tech, tech, tech. But as the rally fades and the Nasdaq falls into correction territory, the sector's drag on the broader market may become more pronounced.

The mega-cap tech names, once darlings of the market, are facing troubles from every direction as the major indexes posted one of their worst days of the year on Monday. Investors should consider watching these names over the next week with care and caution; if these stocks don't stabilize, a more substantial market rout may be in store.

Amazon, though it continues to dominate e-commerce, has now found itself under scrutiny from President Donald Trump, who has posted a fresh round of critical tweets over the last several days.

Facebook is also facing the heat. The social network's stock has fallen into a bear market territory as the company faces regulatory threats of its own amid privacy leaks. Even if it avoids stiff penalties, its advertising business model may have become irreparably damaged as it is forced to restrain some of its data gathering capabilities.

On another front, Apple shares have fallen 6 percent in the last month as concerns over its iPhone X sales mount.

Amother tech stock, Tesla, may well be fighting for its very life as its balance sheet looks dire while its massive bond payments are due over the next 1½ years.

Although these stock-specific stories appear to be idiosyncratic, taken together, they may be the straws that break the market's back. These companies contributed to an outsized portion of the market's gains. This year, they may be the cause of its downfall.

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Michael Santoli

Michael Santoli joined CNBC in October 2015 as a Senior Markets Commentator, based at the network's Global Headquarters in Englewood Cliffs, N.J.  Santoli brings his extensive markets expertise to CNBC's Business Day programming, with a regular appearance on CNBC's “Closing Bell (M-F, 3PM-5PM ET).   In addition, he contributes to CNBCand CNBC PRO, writing regular articles and creating original digital videos.

Previously, Santoli was a Senior Columnist at Yahoo Finance, where he wrote analysis and commentary on the stock market, corporate news and the economy. He also appeared on Yahoo Finance video programs, where he offered insights on the most important business stories of the day, and was a regular contributor to CNBC and other networks.

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