By Justin Pei
Rochester, NY–The U.S. stock market took a hit on Tuesday after Apple said that the coronavirus will impact sales more than expected and would hurt its second-quarter results, sparking concerns among investors that the disease will disrupt global supply chains and have greater implications for the global market.
Shares of Apple fell more than 2% on Tuesday, wiping out as much as $45 billion in market value and dragging stocks down in the U.S. In a note to investors, Apple stated that “Work is starting to resume around the country, but we are experiencing a slower return to normal conditions than we had anticipated”. Apple has currently closed all its stores and partner stores in China to prevent the spread of the coronavirus. Apple also added that revenue in the current quarter won’t reach its target range of between $63 billion and $67 billion as a result of the virus.
As a result of Apple’s warning, U.S. stocks traded lower in inday trading. The Dow Jones was down 0.67% or 193.84 points. The Nasdaq Composite lost 0.52% or 51.21 points, and S&P 500 lowered 0.68% or 268.16 points.
