Nasdaq dragged lower as Apple’s 2-day valuation wipeout hits $200bn

Obtain free Markets updates

We’ll ship you a myFT Each day Digest e mail rounding up the most recent Markets information each morning.

A drop in Apple’s shares pulled US inventory indices decrease on Thursday, as information that China would broaden a ban on the usage of iPhones helped push the tech big’s market capitalisation wipeout over the previous two classes to greater than $200bn.

Wall Road’s benchmark S&P 500 fell 0.4 per cent and the technology-focused Nasdaq Composite declined 0.9 per cent, extending losses from the earlier buying and selling session.

Apple shares had been down 3.3 per cent in afternoon buying and selling in New York on Thursday. That took their decline over since Tuesday’s closing bell to greater than 7 per cent and put them on target for his or her steepest two-day sell-off this yr.

The corporate carries the largest index weighting within the S&P 500 and the Nasdaq Composite. The drop in Apple’s inventory comes after The Wall Road Journal on Wednesday reported that Chinese language authorities officers had been ordered to not use iPhones for work.

Broader considerations over the outlook for the Chinese language financial system have been a recurring theme this week. Knowledge from Beijing on Thursday confirmed Chinese language exports fell 8.8 per cent yr on yr in August, whereas imports declined 7.3 per cent in an indication that demand was slowing domestically and overseas.

China’s CSI 300 fell 1.4 per cent and Hong Kong’s Dangle Seng misplaced 1.3 per cent.

Oil costs edged decrease, as worries about slowing demand in China — the world’s prime importer of the fossil gasoline — overshadowed an earlier announcement of provide cuts by Saudi Arabia and Russia.

Brent crude, the worldwide marker, settled 0.8 per cent decrease to commerce at $89.92 a barrel, though it stays close to its highest degree this yr, whereas the US equal West Texas Intermediate dropped 0.8 per cent to $86.86 a barrel.

In Europe the region-wide Stoxx Europe 600 ended the day 0.1 per cent decrease, marking its seventh successive day of losses. Germany’s Dax additionally declined 0.1 per cent.

In Europe, the Stoxx Shopper Merchandise and Companies index closed 0.7 per cent decrease at its lowest degree for the reason that begin of this yr, as traders frightened that an financial slowdown in China may decrease demand for the area’s exports.

Within the US market, traders additionally weighed information from the US labour division exhibiting that jobless claims decreased greater than anticipated to 216,000 within the week ending September 2, their lowest degree since February.

The info added to quite a few latest indicators that the US financial system stays resilient regardless of the Federal Reserve having raised rates of interest to a 22-year excessive. That implies a “delicate touchdown” for the home financial system stays on the playing cards, which may imply financial coverage will not be loosened quickly.

“Larger for longer [on interest rates] is just not what traders wish to hear, however this message hampered international markets this week as financial information made for uncomfortable studying,” stated Lewis Grant, senior portfolio supervisor for international equities at Federated Hermes.

Yields on US Treasuries, which transfer in the other way to cost, slid regardless of the robust jobless declare figures. The yield on the policy-sensitive two-year word was down 0.07 per cent at 4.95 per cent. The greenback was up 0.2 per cent in opposition to a basket of six currencies on Thursday, hitting its highest degree since March.