GLOBAL MARKETS-Apple's shock warning sends investors to safe-haven assets
Technology stocks led a selloff in Asian, European and U.S. stock markets after Apple, blaming weaker iPhone sales in China, cut its revenue forecast for the first time in nearly 12 years. Apple's U.S.-listed shares were last down 9.7 percent.
That heightened concerns that sluggish global growth may be reflected in the United States, where corporate earnings season is set to kick off in a few weeks.
Survey data from the Institute for Supply Management showed U.S. factory activity slowed more than expected in December, sending stocks on Wall Street lower.
Treasury yields fell and prices surged after the U.S. manufacturing activity data, extending overnight losses prompted by the Apple warning that sent investors fleeing to safe-haven instruments. The two-year Treasury yield briefly dropped below 2.4 percent to reach parity with the federal funds effective rate for the first time since 2008.
"The Apple pre-announcement has roiled the market ever since the news came out," said Michael O'Rourke, chief market strategist at JonesTrading in Greenwich, Connecticut. "People upset about the uncertainty surrounding global markets right now are looking for safety in Treasuries."
In the U.S. equity market, the Dow Jones Industrial Average fell 610.35 points, or 2.61 percent, to 22,735.89, the S&P 500 lost 55.63 points, or 2.22 percent, to 2,454.4 and the Nasdaq Composite dropped 184.36 points, or 2.77 percent, to 6,481.58.
MSCI's gauge of stocks across the globe shed 1.24 percent.
Earlier, in what some market watchers called a "flash crash," the yen rose as much as 4.4 percent versus the dollar after a flurry of automated orders triggered a massive move in Asia, where trade was thin with Japanese participants still away for the New Year holiday.
Yet Brent crude futures rose $1.04, or 1.89 percent, to settle at $55.95 a barrel. U.S. crude futures rose 55 cents to $47.09 a barrel, a 1.18 percent gain.
(Reporting by April Joyner; Additional reporting by Andrew Galbraith, Josephine Mason, Helen Reid and Saqib Iqbal Ahmed; Editing by Bernadette Baum and Chizu Nomiyama)
(This story has not been edited by Devdiscourse staff and is auto-generated from a syndicated feed.)
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