Stocks plummet as tech, Amazon lead broad selloff; Nasdaq negative for 2018

U.S. stocks fell sharply Monday, in the latest example of heavy intraday volatility driven by both uncertainty surrounding trade policy and weakness in the large-capitalization technology and internet sectors.

The day’s weakness was broad-based, with all 11 S&P 500 sectors dropping and eight of them shedding more than 2%. There was particular weakness in the technology and consumer-discretionary sectors, which took the Nasdaq into negative territory for the year and brought it within striking distance of closing in correction territory, defined as a 10% drop from a peak.

In an ominous sign for where equities may be headed, the S&P 500 closed below its 200-day moving average for the first time since June 2016, after the United Kingdom voted to leave the European Union. That closely watched technical level — which the Dow nearly closed below as well — is seen as a gauge of the long-term momentum in an asset.

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