Start Finance The technology stock have tumbled with Apple’s stock

The technology stock have tumbled with Apple’s stock


On Monday, Apple shares sank by 5%, and wiping more than $40bn (£31bn; €35bn) off the tech giant’s market value.

The fall followed a profit warning from some of the firm’s suppliers, which exacerbated concerns that demand for iPhone is slowing.

The declines made the company one of the biggest losers on the Dow, which closed down 2.3%. The Nasdaq market fell more than 2.75%, and  the wider S&P 500 ended about 2% lower.

At the Wall Street sell-off, Technology stocks led the shares in most sectors tumble.

Tech firms helped drive many of the stock market gains earlier in the year but now face rising calls for regulatory and tax changes that could hurt their growth.

While Facebook fell 2.3%, Alphabet dropped over 2.5%, and Amazon more damaged by lost more than 4% of their shares.

Apple’s share price fall came after Lumentum, a US manufacturer of facial recognition technology and Apple supplier, said one of its major customers had reduced its shipments.

As a result, Lumentum downgraded its sales and profit outlook, sending its shares down over 30%.

Lumentum’s warning came shortly after another Apple supplier, Japan Display, also cut its full-year guidance blaming „volatile customer demand“.

The Apple’s shares closed at about $194, down 5% for the day and more than 15% below their peak in October.

Attributing the weaker than expected forecast to one-off changes, such as the timing of the release of new phones, and temporary supply chain issues, Apple has insisted that it is optimistic about its Christmas season outlook.

The reason of this optimism is, the incomes that growing thanks to its services business, which includes services such as the App Store, Apple Pay, and Apple Music.