Nasdaq falls into bear market territory

The tech-heavy Nasdaq composite fell into bear market territory after a 3.6% tumble Monday.

Why it matters: A bear market is Wall Street's term for a 20% decline from a recent high. It's a more acute market slump than a "correction," which is a fall of 10% or more.

• But spiritually the onset of a bear market is much more. It marks a sharp shift in the mood music of the markets. The dour, the sour and the short-sellers of the world see their worldview validated by the market's inability to rally.

The big picture: So far, the Nasdaq composite has suffered a worse beating than the broader S&P 500, which is only down 12.4% from its Jan. 3 high.

• That's probably because the tech stocks that drive the performance of the Nasdaq tend to be especially sensitive to rising interest rates, which we've had in recent months.