A slide in shares of technology giants weighed on the broader market Monday as investors grew wary of heightened regulation tied to the market’s most enduring winners.
The S&P 500 declined 0.4%, after hitting an all-time high on Friday. The tech-heavy Nasdaq dropped 0.7%. The Dow Jones Industrial Average shed about 75 points, or 0.2%.
Technology heavyweights underperformed the broader market as they slashed access to some of President Trump’s favorite megaphones after the storming of the Capitol by his supporters. The riot, planned and discussed on social media, is expected to spur Congressional efforts to regulate big tech. Facebook has indefinitely suspended President Trump, while Apple, Amazon.com and Alphabet’s Google slashed support for the social-media app Parler.
Shares of Twitter fell 5% on concern that the social-media company may face a backlash from regulators or users after it banned Mr. Trump’s personal account, citing the risk of further incitement of violence. Facebook shares lost 1.9%, while Apple dropped 1.7%.
Stocks had rallied in recent days on bets that a Democrat-controlled Congress will increase government spending, bolstering an economic recovery that stagnated recently.