NEW YORK, New York - U.S. technology stocks hesitated on Monday, then fell decisively as California California Governor Gavin Newsom called a halt to his state's reopening, and shut down bars and restaurants state wide.
Stocks had been positive until that announcement which sent stocks, mainly in the tech sector, hurtling lower.
Soaring coronavirus cases finally caught the market on the hop, sending some major companies that have rallied in recent weeks, sharply lower.
"The rally's been driven by a handful of names. You've had headlines about Covid and layoffs and the economy. It's finally caught up with these names everybody's been hiding in," Michael O'Rourke, chief market strategist at JonesTrading in Stamford, Connecticut told Reuters Thomson Monday.
Despite the sell-off of tech stocks, primarily on the Nasdaq and Standard and Poor's exchanges, industrial stocks generally remained flat with the Dow Jones barely moving.
At the close of trading Monday the Dow Jones Industrial Average was up 10.50 points or 0.04% to 26,085.80.
The Standard and Poor's 500 fell 29.82 points or 0.94% to 3,155.22.
The Nasdaq Composite, faring worst of all, plummeted 226.60 points or 2.13%, to 10,390.84.
The U.S. dollar was mixed. The euro however made strong gains across the board, changing hands at 1.1347 against the greenback in late treading in New York on Monday.
The British pound fell to 1.2559. The Japanese yen weakened a touch to 107.28. The Swiss franc edged up to 0.9419.
The commodity currencies all fell. The Canadian dollar dropped to 1.3605. The Australian dollar fell to 0.6941 while the New Zealand dollar dipped to 0.6541.
Overseas markets were strong, with London and Europe closing before the Californian announcement.
The FTSE 100 in London rose 1.33%. The German Dax strengthened by 1.37% while in Paris, the CAC 40 was 1.73% higher.
On Asian markets, the Nikkei 225 hit a monthly high, jumping 494.93 points or 2.22% to 22,784.74.
In Hong Kong, the Hang Seng rose 44.71 points or 0.17% to 25,772.12.
China's Shanghai Composite climbed 59.96 points or 1.77% to 3,443.29.
The Australian All Ordinaries closed 53.00 points or 0.88% higher at 6,089.30.