Stocks Close Lower, Nasdaq Hit Hard as Big-Name Stocks Fall

Breaking News Emails

Get breaking news alerts and special reports. The news and stories that matter, delivered weekday mornings.
/ Source:

Stocks fell on Monday, with the tech-heavy Nasdaq losing more than 1 percent as investors sold-off some big-name stocks such as Facebook and Netflix.

The Dow Jones Industrial Average reversed direction from morning gains and ended the day unofficially down 26 points. The S&P 500 lost 9 points and the Nasdaq shed 50 points, or 1.18 percent.

The index was knocked by heavy losses among some of its recent outperformers, including Facebook, which dropped 4.67 percent, Tesla Motors, down 3.8 percent and Netflix, which lost 6.67 percent.

"These are all stocks that have had enormous gains over the last year; those are high-valuation stocks, and when you talk about a risk-off trade where people are withdrawing capital from riskier areas, that's where people pull from first, stocks that have had significant run-ups," said Matthew Kaufler, portfolio manager at Federated Investors.

The dollar gained against the currencies of major U.S. trading partners.Treasury prices were mixed, with the two-year note's yield jumping 0.1 percent to 0.429 percent. The 10-year yield used to figure mortgage rates and other consumer loans fell 0.6 percent to 2.731 percent.

Ahead of Wall Street's open, the flash Markit/HSBC Purchasing Managers' Index had Chinese manufacturing contracting in the first quarter of the year, boosting hopes that China's government might take steps to stimulate the economy.