Stocks sank on Wednesday, led by a steep decline in tech shares as this month’s sell-off continued.
The S&P 500 dropped 1.9 percent, with the tech sector underperforming. The broad index was also headed for a five-day losing streak — which would be its longest since late 2016 — and fell below its 50-day moving average, a widely followed technical level.
The major indexes have fallen sharply this month. For October, the S&P 500 and the Dow are down more than 2.7 percent and 1.6 percent, respectively. The Nasdaq, meanwhile, has lost more than 5.5 percent.
Rising rate fears and a pivot out of technology stocks have made it a rough last few days. The S&P 500 is down for five straight days. The Dow has dropped four of the last five sessions, losing about 700 points over that span.
Shares of Amazon declined more than 3 percent, while Netflix slid 4.3 percent. Facebook and Apple also fell more than 1 percent each.
“People are getting out of the high-flying tech names right now,” said Larry Benedict, CEO of The Opportunistic Trader. “I think people are under-hedged; there could be more pain ahead.”
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