Dow Drops Over 800 Points As Hot Tech Stocks Reverse Course

Stocks experienced their worst day since June, with a sudden plunge in big tech shares like Apple and Amazon driving the S&P 500 index down 3.5% and the Dow Jones Industrial Average down 2.8%.

The dizzying drop in prices follows a string of record-high trading days, largely fueled by a few superstar tech stocks, such as Facebook, Apple and Amazon.

It was those same high-flying tech companies that led the drop in the market, with Apple down by 8% and Microsoft losing more than 6%. The electric car maker Tesla, which has become a favorite of day traders, lost 9%.

Analysts said the market was simply taking a pause after climbing for months.

"The stock market has run a long way in a short amount of time, particularly in the technology sector. A pause to catch its breath is normal and healthy," said Greg McBride, chief financial analyst at Bankrate.com.

"This market has been due for a pullback. Actually, overdue," he added.