Netflix Inc (NASDAQ:NFLX) dropped 3.1%, while Amazon.com Inc (NASDAQ:AMZN) shares fell over 4% to $1,636.85. Banks and consumer-focused companies and media and communications stocks also took heavy losses.
Saudi Arabia, the world's largest oil exporter, said on Sunday it would cut its shipments by half a million bpd in December due to seasonal lower demand. The S&P 500 fell 54.79 points, or 1.97 percent, to 2,726.22.
The Dow Jones Industrial Average fell more than 600 points Monday as major tech stocks faltered. It was down briefly by 648 points.
Trading stayed choppy in Tuesday's afternoon session as the Dow Jones Industrial Average Index fell despite renewed hopes about US-China trade talks.
The S&P 500 index fell 39 points, or 1.4 per cent to 2,741.
The US Treasury market was closed in observance of Veterans Day.
The S&P 500 is up 52.61 points, or 2 per cent.
"Tech is definitely weighing (on the market)", said Lindsey Bell, investment strategist at CFRA Research. "The question really is growth".
Saints star Lawes on England bench for New Zealand showdown
New Zealand has won the last two World Cups, has been the world's top-ranked side since 2009, and has won 23 of its last 27 Tests. But New Zealand were only five points down at half-time thanks to Damian McKenzie's converted try and a Beauden Barrett penalty.
Kim Forrest, senior portfolio manager at Fort Pitt Capital Group in Pittsburgh said since the technology companies were powered higher for years by showing any amount of growth, "any little bit of growth that goes away from the company, makes the company less desirable". Shares of Align Technology and NVIDIA slid 7.91 percent and 7.84 percent, among the worst performers in the Nasdaq. Shares in Lumentum plunged 30.6 per cent to United States dollars 38.84.
NOT SO CHIPPER: Several chipmakers were trading lower as part of the slide in technology companies. Germany's DAX lost 1.8 percent and France's CAC 40 fell 0.9 percent.
The Toronto Stock Exchange held up slightly better, off about half a per cent to 15,290.The main reason for the comparative strength of Canada's biggest stock market was oil, which weighs heavily on the TSX's performance. Amazon dropped 4.4 percent and Goldman Sachs gave up 7.5 percent.
SEEKING SAFETY: Investors bid up shares in utilities and other traditionally safe-haven stocks. Apple slumped 5 percent.
Meanwhile, the private-equity firm Veritas Capital and the hedge fund Elliott Management reached an all-cash deal to purchase the USA healthcare software maker Athenahealth for about $5.7 billion, a 12% premium to where shares closed Friday.
The Russell 2000 is down 20.71 points, or 1.3 per cent. Oil futures rose earlier on news that major producers planned to reduce output. Banks were the hardest hit and the Austraian dollar also took a hammering as the greenback climbed to its highest level against a basket of currencies since June 2017. The euro gained to $1.1241 from $1.1218. The Nasdaq composite lost 87 points, or 1.2 percent, to 7,319. Britain's FTSE 100 shed 0.7 percent.
Japan's Nikkei ended the day up 0.1 percent.
The S&P 500 added 0.06% to settle at 2,727.