(Bloomberg) — 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.
Shares slid 2.7% and are down about 17% 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 $60 billion of Apple’s market capitalization, putting it under $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.
Tech shares fell broadly on Monday, with the Nasdaq 100 Index down 2% 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%, Alphabet shed 3.5%, and Meta Platforms dropped 0.9%. Microsoft fell 0.7%.
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