NEW YORK (TheStreet) -- Everything must go! As shoppers flooded the internet for seasonal deals on Cyber Monday, it was fitting that tech giants and retail names saw some of the biggest sales on Wall Street.
Apple (AAPL) and Tesla (TSLA) dropped 3.6% and 5.5%, respectively, caught up in volatile trading wherein the VIX spiked more than 5%. Apple had recently touched upon all-time highs. Amazon (AMZN) was also dragging on the Nasdaq, falling 3.6%, after filing to sell four tranches of senior unsecured notes which prompted an outlook downgrade to from Moody's.
Watch the video below for a closer look at how U.S. markets ended the trading day Monday:
Chinese internet stocks were hit hard, both due to the tech selloff and the latest reading on the country's manufacturing activity which skirted contraction levels. Alibaba (BABA) slid 5.1%, Baidu (BIDU) dropped 3.5%, and SouFun (SFUN) fell 7.3%.
Investors were running scared from the retail sector, too, after Black Friday sales fell for a second straight year, down 11% to $50.9 billion.
"It may be Black Friday fatigue. Some of the broader consumer trends remain fairly robust," said David Bechtel, principal of Barrow Funds, in a call. Bechtel noted, though, that private sector debt remains far above pre-financial crisis levels, arguing that "at some level that's going to restrain further consumer spending."
"Many analysts argue Black Friday is becoming less of a telltale sign for holiday spending," said Sterne Agee chief economist Lindsey Piegza in a research note. "Many retailers begin holiday promotions weeks, if not months, in advance, of the Thanksgiving holiday, and shoppers increasingly rely on the internet for sales and promotional buys."
Stifel analyst David Schick advised investors to be wary of Black Friday figures which present a "false narrative." "Conditions are still conducive to better retail performance," he wrote in a report. "A broader spectrum of consumers are in better shape (on a y/y basis) than the last few years, and retailers are more realistic and prepared for the e-commerce threat.
Hopes were high heading into the Thanksgiving weekend that tumbling gasoline prices would fuel increased consumer spending. "For the consumer, we see the recent drop in gasoline prices as equivalent to a roughly $75bn tax cut," Goldman Sach's Kris Dawsey wrote in a report.
Oil prices seemed to have stabilized by Monday, rising 4.8% after a 7% drop on Friday, marking its best trading session in two years. West Texas Intermediate crude hovered at $69.33 a barrel, around 38% lower than a mid-year high point, after OPEC said last week it would not constrain production to address oversupply and soft demand.
The S&P 500 dropped 0.68%, though still 10 points shy of record highs achieved last week, and the Dow Jones Industrial Average fell 0.27%. The Nasdaq tumbled 1.3%.
Benchmark indices recovered from session lows after growth in the U.S. manufacturing sector came in better than expected. The ISM index of national factory activity slipped slightly to 58.7 in November from 59 a month earlier, though remaining above the 50 level indicative of expansion. New orders climbed to their highest level since August, up 66 from 65.8.
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-- Written by Keris Alison Lahiff in New York.