Dow plunges 400 points as Apple leads tech retreat

“The Dow Jones Industrial Average fell 400 points on Monday after a big decline in Apple shares, a rise in the U.S. dollar and lingering worries about global trade weighed on investor sentiment. The tech-heavy Nasdaq Composite pulled back 2.2 percent and fell back into the correction territory it first entered during the October market rout,” Fred Imbert reports for CNBC. “The S&P 500 dropped 1.3 percent as financials tanked, led by Goldman Sachs.”
“Apple shares fell more than 4 percent after Lumentum Holdings, which makes technology for the iPhone’s face-recognition function, cut its outlook for fiscal second quarter 2019,” Imbert reports. “Shares of Lumentum plunged 29.5 percent.”
“The decline in Apple pressured the broader technology sector. The Technology Select Sector SPDR dropped 3.1 percent. Alphabet and Amazon shares pulled back 2.4 percent and 4.4 percent, respectively. Amazon shares also traded around bear-market territory, down about 20 percent from its 52-week high,” Imbert reports. “Goldman shares headed for their biggest drop in seven years after a report Malaysia’s finance minister demanded a refund of fees paid the firm for its work in scandal-plagued state investment fund 1MDB.”
“A strong dollar also pressured equities as investors worried what it would do to multinational earnings,” Imbert reports. “The dollar index hit a high of 97.58, its highest level since June 23, 2017. The U.S. currency also hit a more than one-year high against the euro and Swiss franc.”
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