FAANG tech giants bitten by fresh Wall Street slide

America’s leading technology shares have lost more than $100bn in combined value as renewed fears over Apple’s iPhone production sparked a fresh Wall Street sell-off.

Apple was down by nearly 4% after a report in the Wall Street Journal (WSJ) claimed it had cut production of all three of its handsets launched in September.

Other so-called FAANG stocks – Facebook, Amazon, Netflix and Google parent Alphabet – were also on the slide.

That was part of a wider shares fall, with the Dow Jones Industrial Average off by around 400 points, or nearly 2%, and the tech-heavy Nasdaq off by nearly 3%.

Traders were also reacting to comments by US vice president Mike Pence over the weekend, insisting the US would not back down from its trade dispute with China unless Beijing bows to Washington demands.

Thin trading volumes in New York ahead of the Thanksgiving holiday on Thursday and a shortened session on Friday were seen as partly to blame for the volatility on Monday.

The FAANGs have helped power a decade-long bull run in Wall Street but recent jitters over US shares have dampened some of the spectacular valuations.

On Monday, Facebook was down nearly 6% with Amazon and Netflix off by more than 4% and Alphabet sliding by around 3%.

The WSJ’s report on Apple said lower-than-expected demand for its new iPhones and the decision to offer more models had made it harder to anticipate the number of components and handsets the company needs.

It said that for the iPhone XR, Apple had cut its production plan by up to a third of the nearly 70 million units some suppliers had been asked to produce between September and February.

There was no immediate response from the company.

Apple disappointed investors earlier this month when its forecasts for revenue during the Christmas quarter fell short of expectations.

It took another knock last week when two of its biggest suppliers, Lumentum Holdings and Japan Display, cut their full-year forecasts.

Apple, which saw its value top $1tn earlier this year, has now slipped nearly 20% from its peak.


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