NEW YORK: US stocks tumbled on Monday, with the S&P 500 and Dow Jones industrial Average shedding about 2 percent and the Nasdaq down more than 3 percent.
A slide in Apple's shares to their lowest since July 6 battered the technology sector on concerns about iPhone demand, with mixed signals over the state of play between the United States and China on their trade dispute adding to the weakness.
DOUG BIBEN, FOUNDER AND PORTFOLIO MANAGER, BCM, LOS ANGELES
"The most important stocks are getting hit the hardest--Apple and Amazon. They led us up and now they're leading us down. This is an ugly market. There's been a loss of trust in managements at Apple and Nvidia -- both overpromised and underdelivered. Also, margin calls are coming into play with FANG, Apple _ Rarely do you see these kind of moves in a holiday week."
STEPHEN MASSOCCA, SENIOR VICE PRESIDENT AT WEDBUSH SECURITIES IN SAN FRANCISCO
"The world got too caught up in valuing growth too high, and it is now coming to fruition that people are not going to pay these absurd prices for growth."
"Everyone has been focused on growth. No one has been focused on value. And I think some people are now looking at the world, going, we are going to have a higher interest rate environment. What makes growth so appealing is you are discounting future cash flows. Well, if interest rates are going to move up those future cash flows, by definition, are going to be less valuable."
"I think we are starting to see the FANG trade kind of unravel here, come back to earth a little bit. Simply because I think people have put too much value in growth, value in future cash flows and sort of been ignoring value investments and that is starting to reverse itself here a little bit."
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