Tech stocks lead market falls, Morgan Stanley sees biggest correction since February

Markets fell on Monday.

The S&P 500 fell 0.6 percent, the STOXX Europe 600 fell 0.3 percent and the Nikkei 225 fell 0.7 percent.

Technology stocks were among the biggest losers. The Nasdaq Composite tumbled 1.4 percent and the STOXX Europe 600 Technology Index plunged 1.6 percent.

Facebook fell by 2.2 percent. It has lost more than 20 percent from a recent peak hit on July 25, leaving it officially in bear-market territory.

Michael Mullaney, director of global market research at Boston Partners, said that “underlying fundamentals remain extremely strong in the U.S., which should continue to support us”.

In contrast, analysts at Morgan Stanley said that “the selling has just begun and this correction will be biggest since the one we experienced in February”.