Stocks sink as Apple drags down tech; Dow dips more than 200 points
NEW YORK — Technology companies are leading a broad drop in U.S. stocks that has pulled the Dow Jones industrial average down 200 points. The steep decline comes a day after the market had its best day in more than a month.
Apple dropped more than 3 percent after the company pulled a software update for its iPhones late Wednesday after users complained that they weren’t able to make calls.
KEEPING SCORE: As of 11:22 a.m. Eastern, the Standard & Poor’s 500 index was down 26 points, or 1.3 percent, to 1,972. The Dow slumped 215 points, or 1.2 percent, to 17,001. The Nasdaq composite, which is dominated by technology companies, dropped 76 points, or 1.7 percent, to 4,512. Tech stocks also fell the most among the 10 industries in the S&P 500 index.
WHOOPS: Apple’s stock dropped following news that the tech giant had to pull a software update that prevented users from making phone calls. Others complained that they bent their new iPhones by sitting on them. Apple dropped $3.43, or 3 percent, to $98.32
SUDDENLY BUMPY: Trading has looked turbulent this week, an abrupt break from a sleepy summer. Concerns about slowing growth in China and falling U.S. home sales knocked the market back on Monday, giving the S&P 500 its biggest one-day drop in more than a month. Health-care stocks led a rebound Wednesday, as the S&P 500 closed with its biggest one-day gain in more than a month.
ECONOMY: Claims for unemployment benefits crept up last week. The Labor Department said 293,000 people applied for benefits, but that was slightly lower than economists’ forecasts. The less volatile four-week average fell for the second straight week to 298,500. A separate report said businesses orders for equipment plunged last month, mainly a result of a drop in orders for commercial aircraft.
FURTHER CLUES: Investors have been looking at economic reports for any signs that the improving economy could lead the Federal Reserve to start raising interest rates. Next week, further clues will emerge from a several key pieces of data, including the job market report for September.
ONE VIEW: “The existence of major fundamental risks next week means that there is some caution ahead with many unsure of the direction that markets should be heading,” said Joshua Mahony, research analyst at Alpari.
LOOKING ABROAD: In Europe, Germany’s DAX fell 1.1 percent while the CAC-40 in France fell 0.8 percent. The FTSE 100 index of leading British shares also declined 0.8 percent.
DOLLAR: The dollar has been gaining on other major currencies. The Fed is widely perceived to be creeping closer to an interest-rate increase, a contrast to the current policy stance of the European Central Bank and the Bank of Japan. On Thursday, the euro fell 0.3 percent to $1.274. The dollar fell to 108.88 yen.
ASIA’S DAY: Japan outperformed the region with the Nikkei 225 up 1.3 percent. In mainland China, the Shanghai Composite added 0.1 percent, while Hong Kong’s Hang Seng dropped 0.6 percent.
OIL, BONDS: Benchmark U.S. crude oil edged up 23 cents to $93.03 a barrel on the New York Mercantile Exchange. U.S. government bond prices rose. The yield on the 10-year Treasury note fell to 2.53 percent from 2.57 percent late Wednesday.
