Sluggish tech sector movement causes Wall Street to fall

Asian indexes pulled up

On Tuesday, the United States stocks fell since Apple and other shares of the company’s component suppliers weakened on reports of low demands for the latest Apple handset, the iPhone X, that caused the decline of tech shares.

As stated in Taiwan’s Economic Daily, Apple (AAPL.O) will cut its sales predictions for the flagship handset within the current quarter from the original plan of 50 million units down to 30 million units.

The report, including some brokerage calls on the unenthusiastic demand for the new phone caused Apple shares fall by 2.5 percent, considered as the worst one day percentage decline since August 10.

Companies that supply components to Apple also suffered declines in their shares. Parts suppliers such as Broadcom (AVGO.O), Finisar (FNSR.O), Skyworks Solutions (SWKS.O) and Lumentum Holdings (LITE.O) all experienced losses. The PHLX semiconductor index .SOX declined by 0.97 percent.

The worst market performance was given to one of the 11 prominent S&P 500 sectors, the S&P tech index .SPLRCT dropped 0.70 percent. With the tax reform weighing on the index within the recent days, the index suffered its fifth consecutive drop as last week’s tax overhaul pressured market participants to view tech names gaining smaller boosts.

In spite of the decline in shares, the tech sector as a whole is still on track for gains and is up about 40 percent for the year.

The Dow Jones Industrial Average. DJI declined 0.03 percent, 7.85 points to 24,746.21, the NASDAQ Composite .IXIC fell 0.34 percent, losing 23.71 points to 6,936.25 while the S&P 500 .SPX dropped 0.11 percent, shedding 2.84 points to 2,680.5.

Losses were contrasted by a boost in energy stocks since oil prices increased by over 2 percent, aided by the OPEC-led supply cuts.


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