Dow Jones Industrial Average drops 632 points

The Dow slid 632.42 points, or 2.3%, to close at 27,500.89. The S&P 500 dropped 2.8% to 3,331.84. The Nasdaq Composite closed 4.1% lower to 10,847.69. Tech stocks got battered once again and dragged down the broader market. The Nasdaq is down 10% in three days.

Tech sell-off continues

Shares of Facebook and Amazon dropped more than 4% each. Apple and Microsoft lost 6% and 5%, respectively.  Tesla plunged 21% for its worst single day ever. “High valuations in the mega-cap stocks are stretched far beyond historical levels,” said one strategist.

Chipmakers fall

Shares of semiconductor companies were under pressure after China accused the U.S. of “bullying” as it launched a global data security initiative on Tuesday. Nvidia shares dropped 5% and Micron lost 3%. Applied Materials closed 8% lower.

What happens next?

Weekly mortgage applications data and job opening numbers are set for release Wednesday.