[ad_1]
Shares fell on Monday, making some of their recent gains, as investors dropped shares of some of the big tech companies that dominate the market indices.
The Nasdaq composite was one of the hardest hit among the major benchmarks. The technology index fell 2.8%. The S & P 500 fell by 2% and the Dow Jones Industrial Average by 2.3%.
Apple's shares fell 5% after one of its suppliers, Lumentum, reduced its budget outlook for the current quarter and announced that it had received a request to reduce shipments from one of its suppliers. its biggest customers. The company, whose shares have fallen by more than 30%, has not identified Apple in its warning but Apple is the largest customer of Lumentum, generating about a third of the company's revenue, according to a regulatory document.
Apple's difficulties seemed to weigh on other high-tech companies before. Amazon shares fell 4.4% and Facebook by 2.4%. The social network was briefly disconnected Monday afternoon for many users, giving visitors an error message saying "Sorry, something went wrong".
Alphabet, the parent company of Google, lost 2.6% and the Netflix share fell by more than 3%.
Monday's downturn in technology stocks was a reminder of the drop in ugly stocks in October. Worried about rising interest rates, trade tensions and a potential spike in corporate profits, investors briefly pushed the broader market down almost 10% from the peak reached late September and to be placed in negative territory for the year.
More recently, stocks have taken up much of this ground. Wall Street surged after last month's controversial midterm elections were resolved, with the S & P 500 ending the next day up more than 3.5%.
Monday's pain was not exclusively due to technological values.
Goldman Sachs shares fell 7.5% as questions were raised about the role the investment bank could have played in the looting of a multimillion dollar Malaysian government investment fund.
General Electric shares fell 6.9%, a fourth consecutive decline after statements by its new chief executive did not calm investors' concerns.
But Apple remains a major concern. The company has a market value of over $ 900 billion. The course of the stock price therefore has a disproportionate effect on stock market indices, like the S & P 500, weighted by the size of the market.
This dynamic has been especially a boon to the stock market in recent years. Apple's shares rose more than 45% last year.
However, Apple's recent troubles suggest that some investors are questioning the ability of large technology companies to continue to sell larger markets.
Apple's tumble on Monday followed a further dip after the release of its November 1 results, when the company announced that it would no longer report the number of iPhones sold each quarter. So far this month, its share price has fallen by more than 10%.
Source link
