Stocks dropped sharply on Monday as the biggest and most popular technology stocks plunged. Facebook and Apple led the losses.
The Dow Jones Industrial Average fell 395.78 points to 25,017.44. The S&P 500 dropped 1.7 percent to 2,690.73 as the technology sector pulled back 3.8 percent. The tech-heavy Nasdaq Composite lagged, falling 3 percent to close at 7,028.48 as Amazon dropped 5.1 percent.
The popular "FAANG" trade made up of Facebook, Amazon, Apple, Netflix and Alphabet is now in a bear market with each member down more than 20 percent from their one-year highs.
"It's going to require a recovery in tech to make things happen," said Greg Luken, CEO of Luken Investment Analytics. "I think where we are in tech, we're going to see tough sledding towards the end of the year. I think stocks that are down will see further selling pressure."
Apple led tech shares lower after The Wall Street Journal reported the company has cut production orders for the new iPhones unveiled earlier this year. The company's stock fell nearly 4 percent and fell back into a bear market, down 20 percent from its 52-week high.
Facebook shares dropped 5.7 percent as the company was hit with more negative publicity regarding the fallout from its handling of the 2016 election and foreign influence on its platform. A WSJ report said Facebook CEO Mark Zuckerberg blamed COO Sheryl Sandberg for how the company handled the situation. This report comes after backlash from a New York Times article detailing how Facebook company ignored and then tried to hide that Russia used the platform to disrupt the U.S. election in 2016.
Tech shares also fell after The Financial Times reported Chinese authorities have alleged "massive evidence" of antitrust violations by Samsung, SK Hynix and Micron Technology. The report also said China would deepen its investigation into the three companies, which are the largest memory-chip manufacturers in the world.