Netflix and other tech stocks lead market lower
Monday, March 24, 2014
NEW YORK (AP) — A sell-off in technology stocks Monday pulled the broader market lower as investors unloaded some of the biggest names in the industry.
Netflix fell 7 percent, Facebook fell 5 percent, and Google and Amazon.com each fell more than 2 percent.
Tech stocks have soared over the past year, pushing the Nasdaq composite index up 30 percent over the past 12 months, more than twice as much as the Dow Jones industrial average. Netflix and Facebook have doubled in price in that time.
The Nasdaq lost 50.4 points, or 1.2 percent, to close at 4,226.39.
Other indexes also fell, but not as much. The Standard & Poor’s 500 index fell 9.08 points, or 0.5 percent, to 1,857.44. The Dow Jones industrial average fell 26.08 points, or 0.2 percent, to 16,276.69.
Stocks drifted lower early Monday as traders feared that sanctions against Russia could tip the world’s ninth-largest economy into recession.
Investors were also reacting to news that Russian troops had seized Ukrainian ships and military installations in the Crimean peninsula. Russia annexed the region last week.
Biotechnology stocks, another sector that has soared over the past year, extended a decline that began Friday after U.S. lawmakers questioned the pricing of a Hepatitis C drug made by Gilead Sciences.
A popular fund tracking biotech stocks, the iShares Nasdaq Biotech ETF, fell 3 percent on Monday. It’s been up 53 percent over the past 12 months.
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