Invesitng.com – Stocks took a sharp turn lower in afternoon trading as weakness in blue chips followed strong selling in technology shares.
The sunk about 1.3%, more than 300 points, in afternoon trading. The and the were also down about 1.3%.
Apple (NASDAQ:) was the big drag on the Dow, losing more than 3% as concerns about its iPhone sales persisted in the wake of iPhone component suppliers warning on demand.
“Apple really has people questioning technology and the FAANGs. A lot of investors have their hopes pinned on Apple going up and that’s not happening,” said Kim Forrest, senior equity research analyst at Fort Pitt Capital Group in Pittsburgh.
Financial stocks also struggled as investors moved cash in to Treasuries, pushing yields down. Goldman Sachs (NYSE:) and JPMorgan Chase (NYSE:) were both down more than 3%.
Banks were further pressured after Democrat Maxine Waters, poised to become chair of the U.S. House banking committee, said regulations would not be eased any further on her watch, according to a CNBC report.
“When Waters came up that had a profound impact on the markets and right about the time the S&P went negative,” said Forrest.
— Reuters contributed to this report
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