Apple share plunge knocks US tech stocks


A plunge in Apple's share price has been reflected in wider US technology stocks.

Apple's market value fell by almost 5% at one stage on Monday to a level not seen since July after two of its suppliers cut their full-year forecasts.

That sparked a sell-off in other iPhone component makers while the ugly mood later spread across US stock markets with the Nasdaq Composite – mainly made up of technology firms – down 2.5%.

Image: Apple's latest growth forecasts disappointed investors last month

Market experts pointed to the Veterans Day closure of US bond markets exacerbating the negative sentiment for stocks.

There was a costly correction in values worldwide last month,which some commentators said signalled the end of the bull run of recent years in the US.

It helped take Apple's market capitalisation above $1tn earlier in 2018, though it has since slipped back to $970bn.

The value drain in October was blamed on several factors including rising US interest rates and the effects of Donald Trump's trade war with China.

Lumentum Holdings, which supplies Apple's Face ID technology, said before the market opened that it had trimmed its revenue and profit expectations because a major customer, which it did not name, had reduced its orders.

Screen maker Japan Display was the other firm to lower investors' expectations.

It raised fears in Apple shareholders, traders said, that its own revenue forecasts issued last month could come up short.

Lumentum shares were 31% lower.

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A rebound in oil prices had offered some relief to energy stocks earlier but they later succumbed to the broader selling pressure.

Financials were also hit, with Goldman Sachs more than 6% down.

Original Article


Sky News