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(Reuters) – The Nasdaq Composite Index dropped about 2.5% on Monday, hit by the fall of Apple Inc. shares after two vendors canceled their forecasts, causing a massive sell of others iPhone component manufacturers and weighing on technology stocks.
Apple shares sold 4.7% to $ 209.67, the lowest level since July 27, after Lumentum Holdings Inc., the main supplier of Face ID technology, and screen maker Japan Display Inc. lowered their forecasts.
Lumentum dropped by 31% and resulted in other Apple vendors, including many chip makers such as Cirrus Logic Inc., Qorvo Inc. and Skyworks Solutions Inc.
The technology sector, which has largely fueled the upward trend of the US stock market, fell 3.3%, while the Philadelphia SE Semiconductor index fell 4.4%.
"The technology sector's valuation could potentially drop and semiconductors will really weigh in the short term, especially with the number of new publications and the situation in China," said Lindsey Bell, investment strategist at CFRA Research in New York. .
"You still have regulatory problems with technology, and with the semifinals, we've hit a low point with the business cycle and that's a big concern."
Previously, a rise in oil prices had somewhat relieved energy stocks, but they gave way to wider selling pressure as the S & P-Energy index fell by 1.3%.
At 11:51, the Dow Jones Industrial Average was down 456.55 points, or 1.76%, to 25,532.75%, the S & P 500 down 44.59 points, or 1.60% , at 2,736.42 and the Nasdaq Composite down 190.64 points, or 2.57%. to 7,216.27.
According to analysts, holidays in the US bond markets on Veterans Day could keep trading volumes muted.
"With the closing of the bond market, a catalyst is missing to push the market higher," said Bell.
Nine of the top 11 sectors of S & P were down, with slight gains in the defensive real estate and utilities sectors.
Goldman Sachs Group Inc. fell 5.8%, the most on the Dow. The financial sector declined 1.6%.
Altria Group Inc. lost 1.8% and Philip Morris International Inc. about 1.2% after the Wall Street Journal announced that the US health regulator was planning to ban menthol cigarettes.
Athenahealth Inc. rose 9.7% after private equity firm Veritas Capital and hedge fund Elliott Management decided to buy the health software company for $ 5.5 billion in cash.
The down numbers are more numerous than the developers with a ratio of 2.41 for 1 on the NYSE and 3.05 for one on the Nasdaq.
The S & P index posted 28 new highs over 52 weeks and 10 new lows, while the Nasdaq recorded 13 new highs and 113 new lows.
(Report by Sruthi Shankar in Bengaluru, edited by Shounak Dasgupta)
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