Major technology stocks continued to fall Tuesday, pulling stock markets lower after a series of record highs while plunging the Nasdaq into a correction.

"A perfect storm is brewing, and the market could correct another 15 percent from here, and some technology stocks may dip as much as 30 percent before sentiment stabilizes," Manish Shah, CEO of Miami-based Tollbooth Strategy, told China Daily.

Technology companies, especially those benefiting from government-imposed stay-at-home orders intended to curb spread of the coronavirus, had pushed the market higher in recent weeks.

But on Tuesday, Apple lost 6.73 percent; Amazon fell 4.39 percent; Facebook lost 4.09 percent; and Zoom Video Communication, a video-conferencing software company, declined 5.14 percent.

It was the third consecutive day that tech stocks fell. However, the tech leaders are still up about 30 percent for the year.

On Tuesday, the technology-laden Nasdaq Composite index lost 465.44 points, or 4.11 percent, and closed at 10,847.69.

After steep declines on Friday and Tuesday, the Nasdaq slipped into a correction, or a decline of 10 percent from its recent peak, and the other indexes were down sharply.

Last Wednesday, Nasdaq and the S&P 500 closed at record highs.

The S&P 500 slid 95.12 points Tuesday, or 2.78 percent, and closed at 3,331.84. The Dow Jones Industrial Average fell 632.42 points or 2.25 percent and closed at 27,500.89.

The S&P 500 information technology sector has declined about 9 percent from a record close last Wednesday and also flirted with a correction.

"Markets are finally confronting realities that have been around for a few months," said Shah of Tollbooth Strategy.

"As temporary remote working shifts into long-term remote, the distributed work environment means there is less need to commute and that means less demand for fuel. Air travel hasn't recovered and isn't expected to rebound until June 2021."

Shah said "stretched valuations" — especially the technology sector — have forced "short-term investors to take a profit".

The recent federal stimulus has allowed some retail investors to bet on Tesla, a manufacturer of electric cars. But Congress hasn't yet approved a second stimulus package, and "that party's over", Shah said.

Tesla lost $88.11 a share Tuesday and closed down 21.06 percent.

Without a second stimulus and a broad reopening of the economy, many small businesses are closing permanently.

"At the same time, the retail crisis is evolving into a landlord crisis and soon into a bond market crisis," Shah said.

Oil, a proxy for future economic activity, fell to its lowest level in about two months.

The decline was linked to a slowing or at least uneven recovery along with planned production increases by OPEC that could create an oversupply and undercut prices.

West Texas Intermediate crude, the benchmark for US prices, fell 7.24 percent to $36.90 a barrel — the lowest price since mid-June.

Declining prices punished oil companies.

Conoco-Phillips fell 5.02 percent. Chevron lost 3.65 percent. Sunoco skidded 2.38 percent. Exxon-Mobil fell 2.30 percent.

In a related matter, shares of Phoenix-based Nikola jumped 40.79 percent Tuesday after General Motors said it invested $2 billion for an 11 percent stake in the electric-truck manufacturer. GM said it will produce the Badger, a hydrogen fuel-cell electric pickup truck, by the end of 2022. GM shares rose 7.95 percent.