The technology sector and Apple (AAPL) in particular led a sell-off in stock market prices Monday that saw the Nasdaq composite plunge nearly 3%.
XThe Nasdaq closed with a loss of 2.8% and the S&P 500 down 2%. Indexes closed near session lows. The two indexes have fallen below the close on Nov. 6, wiping away all gains from the follow-through signal that occurred the next day.
The S&P 500 closed back below its 200-day moving average, while the Nasdaq fell deeper below its own 200-day line. Volume was lower from Friday's totals, according to early data.
If Wall Street could pin the blame for Monday's sell-off on a single stock, it would be Apple.
Sales of the company's new line of iPhones appear to be weaker than expected. On Monday, JPMorgan cut its profit estimates for Apple and reduced its iPhone sales forecast, seeing a modest declines in iPhone shipments this year and next.
It was another sign of struggling demand for iPhones. Lumentum (LITE) plummeted 33% Monday after the smartphone parts maker cut revenue guidance. Last week, reports said Apple curtailed plans to increase production of iPhones.
Apple shares fell 5% and sank to the 200-day moving average, where the stock now looks to find a bottom.
Apple was one of the main detractors on the Dow. Goldman Sachs (GS) slid 7.5% and was another major detriment for the Dow. Goldman faces a controversy over an Indonesian investment fund.
Technology, though, was the worst sector. The Philadelphia semiconductor index lost more than 4.3% and erased eight days of work. Health care and some financials also suffered.
The few areas of the market with any relative strength were the same two that have surfaced in prior pullbacks: Utilities and real estate investment trusts. The SPDR Utility ETF (XLU) was a fraction lower and the SPDR Dow Jones REIT ETF (RWR) rose a fraction after paring gains.
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