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Traders dump technology stocks, leading to a broad market decline; Nasdaq sinks 2.6 per cent

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NEW YORK, N.Y. - Technology stocks are sharply lower as traders dump big-name companies that had made huge gains.

Facebook, Google and Netflix — all big winners over the past year — fell sharply, contributing to a rout in the technology sector. Biotech companies, another recent favourite, also took a beating.

The tech-heavy Nasdaq composite plunged 110 points, or 2.6 per cent, to 4,127, its biggest drop in two months.

Other major indexes fell, but not nearly as much.

The S&P 500 index fell 23 points, or 1.3 per cent, to 1,865. The index traded at an all-time high earlier in the day.

The Dow Jones industrial average lost 159 points, or 1 per cent, to 16,412.

As traders dumped tech stocks, they shifted money into less volatile companies like Coca-Cola, Johnson & Johnson and utility stocks.


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