Persistent weakness in technology stocks kept the major indexes under pressure on Monday after last week’s hotter-than-expected inflation readings sparked a downturn in equity markets.
The Dow Jones Industrial Average fell 60 points, as Home Depot and Boeing weighed on the blue-chip index. The S&P 500 lost 0.3% as the tech sector pulled back more than 1%. The Nasdaq Composite fell 0.7%.
Big Tech quickly came under pressure to start the week, with Apple and Facebook each down 0.8%, Netflix down 1% and Google-parent Alphabet shedding 0.6%. Traders have punished the technology sector in recent weeks amid a broader shift out of growth stocks and into cyclical, reopening trades in energy, financials and materials.
Communication services stocks Discovery and AT&T bucked that trend, both up on news of a merger agreement. AT&T announced Monday that it is in advanced talks to merge WarnerMedia, which includes HBO, with Discovery. The new entity will trade as its own public company.