Global stock markets are selling off on Tuesday, with major tech firms looking set to continue the slide that triggered a major fall in global equities on Monday.
Facebook, Apple, Amazon, Google, Netflix — the so-called FAANG stocks — are also set to open more than 1% lower later on Tuesday, adding to the drops seen on Monday, which saw the Nasdaq close down more than 3% lower.
Monday’s sell-off on Wall Street appears to have been largely triggered by a report from the Wall Street Journal that Apple has slashed production orders in recent weeks for all three of its new iPhones unveiled in September.
Wall Street is also worried about global growth and trade tensions amid a quiet week for economic data.
Meanwhile, the S&P 500 fell 1.8% and the Dow Jones Industrial Average shed 1.6%, or nearly 400 points.
Wall Street’s Monday sell-off spread into Asia overnight, with benchmark indexes in Japan and China falling substantially. China’s most-watched index, the Shanghai Composite, fell 2.1%, while Japan’s Nikkei was 1.1% lower at the close.
As the morning began in Europe, stocks on the continent also fell, and after around an hour of trading, Germany’s DAX has dropped 1.2%, while the Euro Stoxx 50 index is just shy of 1% lower.
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“Monday’s sharp sell-off in US technology shares is a reflection of investor concerns over global demand following the recent emerging market currency crises and trade disputes,” Fawad Razaqzada, analyst at Forex.com, said in an email Tuesday morning.
“So, as things stand, the outlook for global equity indices appears bleak and we could easily witness further falls,” he added.
That suggestion looks likely to be correct, with futures pointing to another day in the red for US stocks. As of 9.00 a.m. GMT (4.00 a.m. ET), futures for all three US indexes are at least 0.6% lower.
Here’s the scoreboard:
- Nasdaq futures down 1%; S&P 500 down 0.7%; Dow Jones Industrial Average down 0.6%
- Shanghai Composite Index closed down 2.1%, while the Shenzhen Composite was 2.8% lower
- Benchmark Euro Stoxx 50 down 1%; Germany’s DAX is 1.1% lower; Britain’s blue-chip FTSE 100 is down 0.6%.
- Indexes in Spain, Italy, and France are all more than 1% lower.
- Both major oil benchmarks, Brent and WTI, are down more than 1%, with Brent trading at $66.02 per barrel, and WTI at $56.64.
Lower production by Apple tends to suggest falling demand for its products, which in turn acts as a bellwether for general sentiment surrounding the tech sector. Shares of the world’s biggest technology company are down more than 10% this month as a result.
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