NEW YORK (TheStreet) -- U.S. markets tumbled Monday, extending Friday's selloff amid concerns of over-inflated valuations in technology and biotechnology as investors turned toward value stocks.
- The Dow Jones Industrial Average closed down 1.02% to 16,245.87, while the S&P 500 finished off 1.08% to 1,845.04. The Nasdaq shed 1.16% to 4,079.75.
- The U.S. economic calendar was light on Monday, with February consumer credit numbers scheduled for 3 p.m. EDT. St Louis Federal Reserve Bank President James Bullard told a Los Angeles business conference that the global economy would see little benefit from coordinated monetary policy. Other events scheduled for this week include the Federal Open Market Committee minutes for the March 19 policy meeting on Wednesday, and the March producer price index report on Friday.
- The weakness seen Monday follows a selloff on Friday that took place even after the monthly U.S. jobs report showed signs that the labor market was beginning to shake off the effects of the winter chill. The March job creation number came in at a slight miss, with an addition of 192,000 jobs. U.S. markets closed lower Friday and technology stocks tumbled as investors took profits after a week when the S&P 500 hit new records. "Friday's action is not ideal and suggests a near term pullback may be in the cards. Stepping back, the bull market is aging -- turned 5 last month -- and it will likely get tricky as we move forward," noted Adam Sarhan, the founder and CEO of Sarhan Capital.
- International markets were broadly lower. The Hang Seng closed 0.59% lower while the Nikkei dropped 1.69%. The DAX was falling 1.91% while the FTSE settled down 1.08%.
- While the tech sector continued its fall following Friday's selloff over valuation concerns, some shares were recovering on Monday.
- Twitter (TWTR - Get Report) lost 1.6% after falling 8% last week, while Netflix (NFLX) edged up 0.2%.
- Blue-chip tech Microsoft (MFST) lost 0.13%, but IBM (IBM) jumped 1.4%.
- Amazon (AMZN) was 1.6% lower while Apple (AAPL) dropped 1.6%. Yahoo! (YHOO) dropped 3.5%.
- Questcor Pharmaceuticals (QCOR) surged 18.7% on the announcement that the company will be acquired by Mallinckrodt (MNK) for about $5.6 billion. Mallinckrodt was more than 2.5% lower.
- Pandora Media (P) decreased 5% despite being upgraded to "outperform" from "neutral" at Wedbush.
- First-quarter earnings season is kicking off this week, with financial giants JPMorgan Chase (JPM) and Wells Fargo (WFC) reporting on Friday. Alcoa (AA) leads the kickoff, publishing results after the market close on Tuesday.
-- By Jane Searle, Andrea Tse and Joe Deaux in New York
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