It’s reds across the board as U.S. stocks were mostly down on Tuesday, driven by Apple’s announcement that there is a huge possibility that it could not achieve its second-quarter goals. The tech giant blamed the intensifying outbreak of COVID-19 in China that would lead to the disruption of supply and manufacturing chains, suggesting a broad implication in the health of global markets and industries.
The Dow Jones Industrial Average DJIA, -0.50% traded about 140 points, 0.5%, lower, near 29,254, while the S&P 500 SPX, -0.23% lost 7 points or 0.2% to trade near 3,373. The Nasdaq Composite Index COMP, +0.09% was trading on either side of unchanged near 9,738, after flipping positive in afternoon trade.
Analysts attribute the disappointing Dow performance to Apple dragging down prices after its announcement, data from Automated Insights revealed. U.S. financial markets were closed Monday for the Presidents Day holiday.
“The health and well-being of every person who helps make these products possible is our paramount priority, and we are working in close consultation with our suppliers and public health experts as this ramp continues,” the iPhone maker said in a statement.
Earlier this month, Apple temporarily closed down its stores in China following the global emergency caused by the 2019-nCoV outbreak that originated from Wuhan, China.
The closure was tentatively scheduled up to February 9, 2020, but the company assured that it would open its doors in China “as soon as possible” once it has determined that it is already safe to do so.
In a statement from Apple, the tech superpower said that “out of an abundance of caution and based on the latest advice from leading health experts, we’re closing all our corporate offices, stores and contact centers in mainland China through February 9.”
“Our thoughts are with the people most immediately affected by the Coronavirus and with those working around the clock to study and contain it,” the statement on Saturday added.
China is home to one of Apple’s most prominent manufacturing and assembly hub, and it is also one of its biggest markets. Last year, Apple performed very well in China, as seen in the upward trend in the market performance of the iPhones. Back then, analysts said that they are expecting the stocks to rally in positive momentum.