|
Listen now
|
Apple Inc shares fell almost 3% Thursday, wiping out nearly $200 billion of market value in just two days, as China plans to expand a ban on the use of iPhones to government-backed agencies and state companies.
Shares of the Cupertino, California-based company dropped 6.4% in the worst two-day slump in a month. Apple is the biggest component in major US equity indexes, adding to a broader selloff sparked in part by a litany of woes in China.
The world’s second-biggest economy has been slumping amid a protracted crisis in its real estate market, threatening demand for everything from commodities to consumer electronics. The iPhone maker counts China as its biggest foreign market and global production base.
Adding to Apple’s troubles are rising US Treasury yields as bonds sell off on worries the Federal Reserve will have to step up its fight against inflation as the US economy remains resilient.
The news is having a widespread effect on the markets, with investors selling everything from chips, mega-cap technology to US-listed Chinese stocks.
Bank of America Corp. analyst Wamsi Mohan notes that the “timing of the potential ban is interesting” given the recent launch of Huawei Technologies Co. high-end 5G-capable smartphone.