Tech stocks are getting slammed, Dow drops more than 300 points

Brendan McDermid/Reuters

Traders on the floor of the New York Stock Exchange on September 20.

• Stocks were lower Monday for a third straight day.
• Technology was pressured amid worries of slowing iPhone demand.
• Oil gained as Saudi Arabia signaled it would cut production in December.

Stocks fell for a third straight day Monday, with technology leading the way lower amid worries about waning iPhone demand.

The Nasdaq Composite fell 2.1%, while both the S&P 500 and the Dow Jones Industrial Average lost 1.2%. The Dow was down more than 300 points.

Apple sank more than 4% Monday after the facial-recognition supplier Lumentum cut its outlook, prompting worries of slowing demand for the iPhone.

Chipmakers were hit especially hard, with AMD shedding 9% while Nvidia and Intel lost 7.1% and 2.5%.

Elsewhere, tobacco stocks were pressured after The Wall Street Journal reported late Friday that the US Food and Drug Administration was considering a ban on menthol cigarettes. British American Tobacco slumped 11.8% in London, and Altria was down 2.1% in New York.

On the earnings front, the marijuana producer Aurora Cannabis announced a big jump in revenue and profit, but shares slid more than 4%.

And in deal news, the German database giant SAP announced it would buy the experience-management startup Qualtrics for $8 billion. That news came just days before Qualtrics was expected to go public at a valuation of more than $5 billion. Meanwhile, the private-equity firm Veritas Capital and the hedge fund Elliott Management reached an all-cash deal to purchase the US healthcare software maker Athenahealth for about $5.7 billion, a 12% premium to where shares closed Friday.

Elsewhere, the Saudi energy minister, Khalid al-Falih, told reporters the kingdom was ready to cut oil production by 500,000 barrels a day in December. West Texas Intermediate crude oil, the US benchmark, and Brent Crude oil, the international benchmark, rallied 2.1% and 1.9%.

The US Treasury market was closed in observance of Veterans Day.

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