NEW YORK, New York Share in Apples dropped sharply on Monday, pushing the Nasdaq Composite down as technology stocks were sold off.
Apple fell out of favour as sales forecasts were adjusted downwards. The stock closed down $10.30 or 5.04% at $194.17.
Other phone makers fell in unison, and parts suppliers to phone manufacturers were particularly hard hit.
These are growth stocks, any little bit of growth that goes away from the company, makes the company less desirable, Kim Forrest, senior portfolio manager at Fort Pitt Capital Group in Pittsburgh was quoted by Reuters Thomson as saying.
I dont think this necessarily means that tech is being rejected by consumers, we may have expected too much in the way of new phone sales in the short-run.
Shares in energy companies early in the day rose as the oil price spiked higher, but broader selling countered the interest and brought energy stocks back in line with the rest of the market.
Trading was lighter than usual with bond markets closed for Veterans Day.
With the bond market closed, there is a lack of catalyst to push the market higher, Lindsey Bell, investment strategist at CFRA Research in New York told Reuters Thomson.
At the close of trading Monday, the Dow Jones industrials had tumbled 602.12 points or 2.32% to 25,387.18.
The Standard and Poors 500 gave up 54.79 points or 1.97% at 2,726.22.
The Nasdaq Composite did worst of all, losing 206.03 points or 2.78% to 7,200.87.
On foreign exchange markets the dollar shot higher, particularly against the British pound and the euro. Brexit concerns weighed on the British pound, which was the first of the majors to buckle. The euro then fell in sympathy with it.
Around the New York close on Monday the euro was quoted at 1.1240, close to its low for 2018.
The British pound fell to 1.2854.
The Japanese yen which initially weakened sharply, hitting a low of 114.22, later recouped part of those losses. Around the close in New York on Monday the yen was quoted at 113.81.
The Swiss franc was changing hands at 1.00994, while the Canadian dollar slid to 1.3226.
The Australian and New Zealand dollars, while softening a touch, remained firmly bid at 0.7190 and 0.6724 respectively.
In overseas markets, stocks in Asia rose across the board, while in Europe they fell.
At the close of trading in London on Monday, the FTSE 100 was 52.26 points or 0.74% lighter at 7,053.08.
The German Dax lost 203.72 points or 1.77% to 11,325.44.
The Paris-based CAC 40 dipped 47.65 points or 0.93% to 5,059.09.
The Nikkei 225 in Tokyo gained 19.63 points or 0.09% to 22,269.88.
The Hang Seng in Hong Kong rose 31.26 points or 0.12% to 25,633.18.
Chinas premier index, the Shanghai Composite strengthened 31.64 points or 1.22% to 2,630.51.
The Australian All Ordinaries jumped 16.20 points or 0.27% to 6,027.20.