The technology sector fell amid fears that other companies will echo warnings from Apple about the implications of the coronavirus outbreak for demand growth.
The PHLX SOXX Semiconductor index, which tracks the major chipmakers considered among the most vulnerable to major interruptions in the global supply chain, fell by almost 5%. One strategist said it could be an encouraging sign that few tech companies have so far followed Apple's lead to warn about the impact on growth.
"If you think about it, Apple's preannouncement the other day really gave the green light to companies to say: 'hey it's hurting Apple, well it's hurting us, too,'" said Rich Steinberg, chief market strategist at The Colony Group. "And then you can surprise on the upside."
Mr. Steinberg said the tech sector was due a correction after the "unhealthy concentration" of capital in the largest five tech stocks, which came to comprise as much as 18% of the aggregate market value of the Standard & Poor's 500.
Among those companies, Apple, Amazon.com, Microsoft, Google parent Alphabet and Facebook were all down by 3.5% or more Monday.
Tesla, one of the fastest rising stocks on the tech-oriented Nasdaq Composite this year, fell by more than 7%.
ServiceMax, a software company backed by Silver Lake is receiving a new $80 million infusion of capital from the private-equity firm and the venture arm of business-software giant Salesforce.com, as reported earlier.
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(END) Dow Jones Newswires
February 24, 2020 17:34 ET (22:34 GMT)Copyright (c) 2020 Dow Jones & Company, Inc.