Markets

Dow closes down nearly 400 points as tech stocks tumble

Updated on: November 19, 2018 / 4:08 PM EST / CBS/AP

Stock market decline: The signs of a bear market

Technology stocks led a slump on Wall Street, with drops in Apple and Facebook dragging down the major indexes. The Dow briefly sank 500 points, but recovered the worst of its losses to close down 395 points, at 25,017.

The S&P 500 index fell 1.6 percent, closing at 2,690. The Nasdaq composite lost more than 3 percent, dropping to 7,028.

Apple lost nearly 4 percent and Facebook gave up 5.2 percent. Chipmaker Nvidia dropped another 12 percent to $144.70 after it said last week that it had a large number of unsold chips because of a big drop in mining of cryptocurrencies.

Nissan's U.S.-listed shares slumped more than 5 percent after the carmaker's chairman, Carlos Ghosn, was arrested after allegedly under-reporting his income.

The parent company of California utility Pacific Gas & Electric fell again after it disclosed that it had a power line failure near the start of a deadly wildfire the morning the fire began. The Mercury News of San Jose reported Saturday that the company said in a filing that it had an outage at 6:45 a.m. on Nov. 8 in Concow. Authorities say 76 people have been confirmed dead in the Camp Fire.

PG&E stock fell 4.5 percent to $23.29. The stock has lost half its value since Nov. 8 in spite of a big rally on Friday.

Clashes between China and the U.S. at a Pacific Rim summit over the weekend left investors feeling pessimistic about the prospects for a deal that would end the trade tensions between the world's two largest economies.

The U.S. has imposed a 10 percent tariff on $200 billion of Chinese goods, and that tariff is set to rise to 25 percent on Jan. 1. Another $50 billion of Chinese goods already is subject to 25 percent duties. Beijing has responded with penalty duties on $110 billion of American goods.

Talks continue ahead of a meeting between Chinese President Xi Jinping and President Donald Trump planned for the G-20 summit later this month.

Bond price didn't move much. The yield on the 10-year Treasury note held steady at 3.07 percent.