Mainenews reporter

Chinese companies slammed in tech stock plunge

Chinese companies slammed in tech stock plunge

Tech stocks trimmed losses on Monday following a brutal start that saw shares across several companies plunge off financial concerns in China. China’s Shanghai composite index experienced its biggest one-day drop since 2007, plummeting 8.7%. Chinese firms including Alibaba sunk in morning trading on Wall Street, with the e-commerce giant down nearly 3%.

Last September, Alibaba electrified U.S. stock markets with the launch of its initial public offering. But after closing at a high above $119 in November, Alibaba’s stock has plunged below its IPO price of $68 through Monday trading. As for other Chinese companies, web services firm Baidu — which trades on the Nasdaq — is down more than 7%, while telecommunications giant China Mobile Limited slipped 6.6%.

Shares of U.S. companies have not been immune to the sell off. Apple was down nearly 2% after opening the day below $100, but has since bounced back in midday trading. The potential impact on the Chinese economy prompted Apple CEO Tim Cook to release a statement to CNBC that the tech giant is still enjoying “strong growth” in the region. Social stocks were hit hard in Monday trading before recovering. Facebook shares dropped 4.5% initially, but have since crept upward. Twitter dropped 3% and professional social network LinkedIn sunk 1.6%. Both Google and Microsoft are also trading lower.

The slide in tech stocks is part of a larger, brutal day for Wall Street. The Dow Jones Industrial Average dove more than 250 points in midday trading after opening down more than 1,000 points. The Nasdaq is down 1.19%.