The Nasdaq tumbled 1.6 per cent on Monday, confirming a correction as it was dragged down by Alphabet, Facebook and on fears the companies are the targets of US government antitrust regulators. While the sell-off in the internet heavyweights was the biggest drag on the Nasdaq, the index has been falling steadily since its 3 May record closing high as investors worried about slowing global growth amid an escalating US-China trade war.

The S&P 500 had a volatile session and ended the day down 0.3 per cent, but the Dow Jones Industrial Average ended the session virtually unchanged. The Dow Jones Industrial Average rose 4.74 points, or 0.02 per cent, to 24,819.78, the S&P 500 lost 7.61 points, or 0.28 per cent, to 2,744.45 and the Nasdaq Composite dropped 120.13 points, or 1.61 per cent, to 7,333.02 which was 10.2 per cent lower than its 3 May close. A correction is defined as a 10 per cent drop from the most recent 52-week high.

The benchmark S&P 500 swung in and out of negative territory during the day as investors monitored the latest comments around the US trade battles with both China and Mexico, as well as US President Donald Trump’s decision on Friday to end preferential trade treatment for India.