Nasdaq and S&P 500 fall as Facebook leads tech plunge, Dow rises 150 points

The tech-heavy Nasdaq Composite and S&P 500 opened lower on Thursday after a sharp decline in Facebook sent tech shares lower.

The Nasdaq dropped 1 percent, on track for its worst day since June 27, when it plunged 1.5 percent. The S&P 500 declined 0.3 percent as tech pulled back 1.6 percent. 

Facebook shares dropped nearly 20 percent, a day after its quarterly revenue missed expectations. Global daily active users, a key metric for the social media giant, also disappointed investors. Additionally, Facebook said it expects its revenue growth rates to slow down from last year. Facebook's earnings per share, however, topped Wall Street estimates.

"It's all about tech and Facebook," said Tom Essaye, founder of The Sevens Report. "Facebook earnings and guidance were a disaster and at one point the stock was down 25% overnight. Now, the question is how much will Facebook weakness pull down the entire market?

The decline in Facebook's stock dragged down the entire tech sector, with shares of Amazon, Netflix and Alphabet all trading lower.

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