The Nasdaq Composite index fell about 2.5 percent on Monday, hit by a slump in Apple Inc shares after two suppliers cut their forecasts, sparking a selloff in other iPhone component makers and weighing on technology stocks.
Lumentum plunged 29.6 percent and dragged down other Apple suppliers, many of them chipmakers such as Cirrus Logic Inc
The technology sector <.splrct>, which has fuelled much of the U.S. stock market`s bull run, fell 3.2 percent, while the Philadelphia SE Semiconductor index <.sox> dropped 4.1 percent.
"These are growth stocks, any little bit of growth that goes away from the company, makes the company less desirable," said Kim Forrest, senior portfolio manager at Fort Pitt Capital Group in Pittsburgh.
"I don`t 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."
Earlier, a rebound in oil prices had offered some relief to energy stocks, but they succumbed to the broader selling pressure, with the S&P energy index <.spny> down 1.2 percent.
At 13:18 ET the Dow Jones Industrial Average <.dji> was down 492.79 points, or 1.90 percent, at 25,496.51, the S&P 500 <.spx> was down 45.77 points, or 1.65 percent, at 2,735.24 and the Nasdaq Composite <.ixic> was down 188.37 points, or 2.54 percent, at 7,218.53.
A holiday in the U.S. bond markets for Veterans Day could keep trading volumes muted, analysts said.
"With the bond market closed, there is a lack of catalyst to push the market higher," said Lindsey Bell, investment strategist at CFRA Research in New York.
Nine of the 11 major S&P sectors were lower, with slight gains seen in the defensive real estate <.splrcr> and utilities <.splrcu> sectors.
Goldman Sachs Group Inc
The financial sector <.spsy> declined 1.6 percent.
General Electric shares
Declining issues outnumbered advancers for a 1.98-to-1 ratio on the NYSE and a 2.50-to-1 ratio on the Nasdaq.
The S&P index recorded 28 new 52-week highs and 10 new lows, while the Nasdaq recorded 17 new highs and 124 new lows.
(This article has not been edited by Zeebiz editorial team and is auto-generated from an agency feed.)
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