(CNBC) — U.S. stocks closed sharply lower on Tuesday, erasing earlier gains, as a decline in the broader tech sector brought the major averages down.
The Nasdaq composite fell 2.9 percent to 7,008.81 as shares of Apple and Amazon declined. The S&P 500 pulled back 1.7 percent 2,612.62, with tech sliding 3.5 percent. The Dow Jones industrial average closed 344.89 points lower at 23,857.71 and re-entered correction territory, with Microsoft as the worst-performing stock in the index. Earlier in the session, the Dow rose 243 points, while the S&P 500 and Nasdaq also traded higher.
Facebook shares contributed to tech’s losses, as they fell 4.9 percent after Bank of America Merrill Lynch reduced its price target on the stock for the second time in five days. The cut comes as Facebook’s fallout from the data scandal continues.