As Markets Tumble, Tech Stocks Hit a Rare and Ominous Milestone

 

When it comes to the stock market, America’s technology giants have become a harbinger of more pain to come.

If Facebook, Apple or Google looked shaky this year — as investors worried about growth, regulation or mismanagement — the rest of the market felt it. In recent weeks, as these companies have succumbed to concerns about the global economy, slowing profits or privacy concerns, they have led the decline in stocks.

Now, technology companies are dragging stocks into an ominous territory that investors have not seen in nearly a decade: a severe decline known as a bear market.

The Nasdaq index — Wall Street’s most technology heavy major benchmark — closed on Friday down more than 20 percent from its August peak, meaning it has officially entered a bear market. The S&P 500 and Dow Jones industrial average, both of which also include the biggest tech companies, are not far behind.