Shares slid 2.7 per cent and are down about 17 per cent off a peak hit in early January
Author of the article:
Bloomberg News
Ryan Vlastelica
In a photo taken on Feb. 22, 2013, a young man walks past a Foxconn recruitment point in Shenzhen. Photo by STR/AFP/Getty Images Apple Inc. shares fell on Monday, dropping below their 200-day moving average, after one of its suppliers, Foxconn, halted operations at its Shenzhen sites following a government-imposed lockdown.
Advertisement 2 This advertisement has not loaded yet, but your article continues below.
Shares slid 2.7 per cent and are down about 17 per cent off a peak hit in early January. The iPhone maker is now trading at its lowest since November. The day’s drop erased more than US$60 billion of Apple’s market capitalization, putting it under US$2.5 trillion.
Analysts currently see a limited impact from the halted production given that Foxconn should have inventory buffers. Still, BofA wrote that a longer-than-expected shutdown “can cause ripple effects at other components that can create a shortfall in production.”
Shares in Apple have fallen for five straight weeks, their longest weekly losing streak since May and part of a broad-based weakness in tech stocks in 2022 on concerns growth will slow as the Federal Reserve starts raising interest rates. Russia’s invasion of Ukraine, which caused commodity prices to jump and heightened worries about inflation, has also weighed on the group.
Advertisement 3 This advertisement has not loaded yet, but your article continues below.
More On This Topic Saudi Aramco narrows in on Apple for world’s most valuable firm Apple announces low-cost iPhone SE with 5G, faster chip for Macs ‘It may be an unsettling change’: Apple sets return-to-office deadline for corporate staff Apple posts record quarterly sales in sign it tamed supply-chain crisis Tech shares fell broadly on Monday, with the Nasdaq 100 Index down 2 per cent and poised to close at a level that would represent a bear market. Meanwhile, the S&P 500 Index fell into a “death cross” — with the 50-day moving average falling below the 200-day moving average. Among other mega-cap names, Amazon.com fell 2.9 per cent, Alphabet shed 3.5 per cent, and Meta Platforms dropped 0.9 per cent. Microsoft fell 0.7 per cent.
Bloomberg.com
Financial Post Top Stories Sign up to receive the daily top stories from the Financial Post, a division of Postmedia Network Inc.
By clicking on the sign up button you consent to receive the above newsletter from Postmedia Network Inc. You may unsubscribe any time by clicking on the unsubscribe link at the bottom of our emails. Postmedia Network Inc. | 365 Bloor Street East, Toronto, Ontario, M4W 3L4 | 416-383-2300