A sharp decline in shares of Google and Amazon punctuated an otherwise quiet day on Wall Street.
Google dropped as much as 6 percent in early trading on Monday, and Amazon fell about three and half percent, following reports that the tech giants are facing greater scrutiny from antitrust regulators in the Justice Department and Federal Trade Commission.
The Justice Department is exploring an investigation of Google’s advertising and search business. In Amazon’s case, the F.T.C. is looking into whether the company’s e-commerce platform edges out new competition.
[Read more about Washington’s interest in Google and Amazon.]
The declines for the on Monday helped drag the technology heavy Nasdaq index more than 1 percent lower. The broader S&P 500 index was slightly lower in early trading Monday.
Investors remain watchful of developments on the trade front, after stocks suffered their sharpest decline this year in May with a 6.6 percent drop. That nervousness lingered in the bond market Monday, with the yield on 10-year Treasury bonds falling, suggesting investors increasingly believe trade tensions could hinder world economic growth.
On Sunday, China issued a defiant note with a white paper blaming the United States for starting the trade war between the two countries, suggesting breaking the impasse will be difficult. Two days earlier, the Chinese government threatened to put American companies and individuals on a blacklist if they stopped supplying their Chinese partners.