The major averages took steep losses to start the week as investors continued their rotation out of technology stocks amid rising bond yields.
The Dow Jones Industrials lost 323.54 points 34,002.92, despite large gains in Merck.
The S&P 500 dropped 56.58 points, or 1.3%, to 4,300.46
The NASDAQ Composite thundered lower 311.21 points, or 2.1%, to 14,255.49.
Large tech shares like Apple, Nvidia, Amazon and Microsoft were lower as investors eyed bond yields. A surge in rates to end September
knocked highly valued tech stocks.
Social media giant Facebook lost 4.9% after being accused of a “betrayal of democracy” by a whistleblower who revealed her identity on Sunday.
On the positive side, Tesla rose 0.8% after the company said this weekend that it delivered 241,300 electric vehicles during the third quarter, well above analysts estimates.
Merck shares gained 2.1%, following through on an 8% surge on Friday after the drug maker said its oral antiviral treatment developed with Ridgeback Biotherapeutics for COVID-19 reduced the risk of hospitalization or death by 50% for patients with mild or moderate cases.
Southwest rose 1.3% after an upgrade to overweight from equal weight from Barclays. The same analyst upgraded the North American Airlines sector to positive from neutral.
Energy stocks also rose amid an uptick in oil prices. Exxon Mobil gained 1.3% and ConocoPhillips rallied 2%.
Prices for 10-year Treasurys listed lower, raising yields to 1.48% from Friday’s 1.47%. Treasury prices and yields move in opposite directions.
Oil prices gained $1.72 to $77.60 U.S. a barrel.
Gold prices jumped $10.80 to $1,769.20 U.S. an ounce.