(Bloomberg) — Apple Inc. shares fell on Monday, closing below their 200-day moving average for the first time since June, after the iPhone maker’s supplier Foxconn halted operations at its Shenzhen sites following a government-imposed lockdown.
Shares dropped 2.7%, ending at their lowest since November. The decline erased more than $67 billion off Apple’s market capitalization, putting it under $2.5 trillion. With the day’s move, the stock is down 17% off a peak hit in early January.
Analysts currently see a limited impact from the halted production, though BofA wrote that a longer-than-expected shutdown “can cause ripple effects at other components that can create a shortfall in production.”
Shares of Apple have fallen for five straight weeks, their longest such streak since May. The decline has been part of the broad-based weakness seen in tech stocks in 2022, amid concerns over slowing growth and higher rates from the Federal Reserve. Russia’s invasion of Ukraine, which caused commodity prices to jump and heightened worries about inflation, has also weighed on the group.
Tech shares fell broadly on Monday, with the Nasdaq 100 Index ending down 1.9% and closing in a bear market. Among other mega-cap names, Microsoft Corp. fell 1.3%, Amazon.com slid 2.5%, Alphabet shed 3%, and Meta Platforms declined 0.5%.
(Updates to market close.)
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