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NEW YORK – The Nasdaq fell by nearly 3% and the Dow and S & P lost more than 1% on Monday, as investors withdrew from Apple and Internet stocks, while conflicting signals about the price dropped. state of affairs between the United States and China regarding their trade dispute were added caution.
Apple Inc. shares fell 3.5% after the Wall Street Journal announced that the company had cut back on production orders in recent weeks for the three iPhone models launched in September.
The iPhone maker 's stock is now down about 20% from October' s October record following disappointing holiday quarter sales forecasts and weak outlooks for the several suppliers. The S & P 500 technology index, down 3.5%, resulted in losses in the sector.
Other market leaders – including "FANG" stocks – also fell sharply, underlining the belief that their leadership was fragile. Facebook's shares fell by 5.1%, Amazon.com by 4.3%, Netflix by 4.9% and Alphabet by 3.4%.
Since FANG's outperformance peaked on August 30, the group has underperformed the S & P 500 by 16.25%. This is their worst underperformance since the first half of 2014, when they underperformed by about 20%.
"You see this rotation away from the technology, the indices are much more growth-oriented because of the sheer size of these companies, and they dominate the indices.You will get a bigger underperformance of the growing names." said Paul Nolte, portfolio manager at Kingsview Asset Management in Chicago.
Over the weekend, leaders in the Asia-Pacific region meeting in Papua New Guinea failed to agree on a release for the first time; United States and China being in the foreground.
US Vice President Mike Pence said on Saturday that the United States will not give up its trade dispute with China unless Beijing complies with US demands, easing optimism. commercial aroused Friday by the comments of President Donald Trump.
The Dow Jones Industrial Average Index fell 391.7 points, or 1.54%, to 25,021.52, the S & P 500 lost 41.9 points, or 1.53%, to 2,694 , 37 and the Nasdaq Composite lost 195.74 points, or 2.7%, to 7,052.14.
New York Fed Chairman John Williams said on Monday that the US central bank was going ahead with plans to gradually raise interest rates next month, in a bid to boost interest rates. a more normal policy, which may have put additional pressure on equities.
Some investors have wondered whether the Fed could continue to raise interest rates, which could hurt growth.
Richard Clarida, the new vice president of the Fed, said Friday that US rates were coming close to Fed estimates of a neutral rate, which "makes sense".
Shares of Apple suppliers were also affected, including Lumentum Holdings Inc., Universal Display Corp, Cirrus Logic Inc and Skyworks Solutions Inc.
The Philadelphia SE Semiconductor Index, which also includes some Apple vendors, lost 3.1%, further extending losses from the previous session.
Trading volumes were meager during a shortened week on vacation, before Thanksgiving Thursday and a shorter session on Friday, resulting in slight volatility for the markets, traders said.
Falling issuance outnumbered growth on the NYSE by 2.70 / 1; on the Nasdaq, a ratio of 2.88 to 1 favored the decline.
The S & P 500 recorded 26 new highs in 52 weeks and 17 new lows; the Nasdaq Composite recorded 16 new highs and 140 new lows.
(Additional features by Medha Singh and Sruthi Shankar in Bengaluru, Karen Brettell and Jennifer Ablan in New York, edited by Arun Koyyur and James Dalgleish)
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