(Reuters) – The Nasdaq Composite Index fell at about 2.5 percent on Monday, affected by a decline in Apple Inc shares after two vendors shot their forecasts, kicked sales in other iPhone component manufacturers and weighed on technology layer.
Apple shares fell by 4.4 percent to $ 195.40, the lowest since July 27, after Lumentum Holdings Inc, the main supplier of Face ID technology and screen manufacturer Japan Display Inc, lowered its forecasts.
Lumentum pulled 29.6 percent and dragged other Apple vendors, many of the chip makers like Cirrus Logic Inc, Qorvo Inc and Skyworks Solutions Inc.
“This is growth stocks, some growth that goes away from the company makes the company less desirable,” said Kim Forrest, senior portfolio manager at Fort Pitt Capital Group in Pitt sburgh.
“I do not necessarily think that the technology is rejected by consumers, we can have expected too much in the way of new telephone sales in the short term.”
Previously, a decline in oil prices had offered some relief of energy stocks, but they led to the broader selling price, with the S & P energy bill down 1.2 percent.
At 13:18 ET, the Dow Jones Industrial Average was 492.79 points or 1.90 percent, at 25,496.51, the S & P 500 was down 45.77 points or 1.65 percent at 2.735.24 and Nasdaq The composite was down 188.37 points or 2.54 percent at 7.218.53.
A vacation on the American bond markets for Veterans Day could keep the volumes dampened, analysts said.
“With the bond market closed, catalyst is missing to drive the market higher,” said Lindsey Bell, investment strategy at CFRA Research in New York.
Nine of the 11 major S & P sectors were lower, with small gains in defense real estate and exploitation sectors.
Goldman Sachs Group Inc. fell 7.1 percent, mostly at Dow. Malaysian Finance Minister Lim Guan Eng said that the country sought a full refund of all fees it paid to Wall Street Bank to settle billions of offers of troubled state fund 1MDB, Bloomberg reported. (https://bloom.bg/2PZvGry)
Financial sector decreased 1.6 percent.
General Electric shares dropped as much as 10 percent to under 8 dollars for the first time since March 2009 after Chief Executive Officer Larry Culp said the company was saddled with too much debt and would immediately sell assets to reduce leverage.
Decreasing issues exceed advocates for a 1.98 to 1 ratio on NYSE and a 2.50 to 1 ratio on Nasdaq. 19659002] The S & P index recorded 28 new 52-week and 10 new downturns, while Nasdaq recorded 17 new heights and 124 new downturns.
(Reporting of Sruthi Shankar in Bengaluru; Editing of Shounak Dasgupta)