On the first trading day of April, which is also the first trading day of the second quarter, stocks are tanking thanks to a combination of anxiety about a trade war, and fears about the tech industry getting hit with regulation, CNBC reported.
The Dow Jones industrial average plunged 596 points, with Intel as the worst-performing stock in the index. The 30-stock index also touched a new low for the year on Monday, falling below the low touched during the slide in February.
The S&P 500 dropped 2.6 percent and entered correction territory, with tech falling 2.7 percent. The index also dropped below its 200-day moving average, a key technical level. The Nasdaq composite dropped nearly 3 percent — also entering correction — as Amazon declined 5.4 percent.
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"The market leaders are under pressure," said Marc Chaikin, CEO of Chaikin Analytics. "It's a situation where the proven winners for the past few years are faltering." When that happens, "there is a negative psychological sense in the market."