- Stocks fell Monday, dragged lower by technology companies.
- The Wall Street Journal reported Apple slashed its production orders.
Stocks fell Monday, dragged lower by mega-cap technology companies, as Wall Street worried about global growth and trade tensions amid a quiet week for economic data.
The tech-heavy Nasdaq 100 index plummeted 3.26%, marking its lowest close since the beginning of May. The index has fallen almost 13% since reaching a record on August 29.
Meanwhile, the S&P 500 fell 1.81% and the Dow Jones Industrial Average shed 1.56%, or nearly 400 points.
Apple dropped about 3.8% after the Wall Street Journal reported the company slashed production orders in recent weeks for all three of its new iPhones unveiled in September.
iPhone suppliers, including Lumentum Holdings Inc. (-5.3%) and Universal Display Corp (3.8%), were also hit amid worries about faltering demand. Shares of the world’s biggest technology company are down more than 10% this month.
Other FAANG stocks took a beating, with Amazon down about 5.5% and Netflix about 5.8% lower. Facebook shed 5.8%, and Google-parent company Alphabet fell 4.1%.
Semiconductor companies extended sharp declines from last week when Nvidia (-11.7%) posted revenue and guidance that missed analyst expectations. Advanced Micro Devices (-7.2%), Cypress (3.2%) and NXP Semiconductors (3.5%) were among losers in the sector.
Trade tensions continued to weigh on global markets after the US and China clashed at a summit in Papua New Guinea over the weekend, blocking a declaration at the annual Asia Pacific Economic Cooperation for the first time in nearly three decades.
President Donald Trump and Chinese leader Xi Jinping are expected to meet at a G20 gathering in Argentina on Nov. 30 and Dec. 1.
“Comments on US-China trade tensions are likely to remain in focus this week ahead of the G20 Summit at the end of the month,” Vince Heaney, a strategist at UBS, said in an email.
Elsewhere, the price of Bitcoin continued to slide, dipping below $US5,000 per coin for the first time this year amid a broader cryptocurrency sell-off.
Oil was mixed as traders weighed the possibility of an OPEC cut. Crude prices have dropped more than 15% over the past three months, with West Texas Intermediate rising just above $57 per barrel and Brent falling just below $US67 a barrel.