Panic over China, global economy pummel tech stocks as markets plummet

Following the near-collapse of Chinese stocks Monday morning, U.S. tech companies started today facing their mortality as the Dow Jones Industrial Index opened down 1,000 points.

The worst of the stomach-churning plunge eventually reversed, as the Dow recovered and was down only 503.62, or 2.16 percent, about 90 minutes after opening. The tech-heavy Nasdaq was down 101.43, or 2.16 percent.

It is the scenario many feared after U.S. markets ended last week with steep drops. For months, investors shrugged off problems like the Greek financial crisis and the deteriorating Chinese economy. But in recent days, the gloom has finally reached U.S. shores, and investors seem to be overcompensating by selling everything in sight.

Though the day still has a long way to go, tech seems to be hit particularly hard.

To point to just one example, Apple fell to as low as $92 from its close of $105.76 on Friday. But after 90 minutes, the stock climbed back to $103.79 after Apple CEO Tim Cook took the extraordinary step of emailing a CNBC reporter to argue that the company’s business in China still looked strong.

https://twitter.com/carlquintanilla/status/635799629947404288

We’ll be following as markets develop today.