US stocks sharply lower, weighed down by continuous slump in tech stocks

Major US equity indices witnessed a weaker opening at the start of a new trading week amid the ongoing slump in technology stocks.

A second session of hefty losses for the tech-heavy Nasdaq Composite Index seems to have spooked the market and the same is evident from a sharp bounce for the CBOE Volatility Index (VIX), from a 23-year low touched on Friday.

At the time of writing, the Dow Jones Industrial Average was down around 55-points to 21,216, while the broader S&P 500 Index dropped 10-points to 2,422. Meanwhile, Nasdaq Composite Index underperformed the markets and slumped 85-points to 6,122, primarily led by a sharp drop in shared of Apple Inc.

All eyes turn to the two-day FOMC meeting starting Tuesday, where the central bank is widely anticipated to raise interest rates. Hence, investors are likely to remain on the sidelines and evaluate the effect of Fed rate-hike action on cyclical stocks.

Market participants would also keenly scrutinize the accompanying monetary policy statement in order to gain further insight over the central bank's view on shrinking its balance sheet and its assessment of modest economic growth.