Stocks dropped on Monday, giving back a piece of their recent gains when investors dumped stocks in some of the major technology companies that keep big fluctuations over major market indices.
The Nasdaq composite was one of the most difficult among the major benchmarks. The technological tungsten index was 2.8 percent. S & P 500 fell 2 percent, and industrial production in Dow Jones fell 2.3 percent.
Apple's shares dropped 5 percent after one of the suppliers, Lumentum, broke down its fiscal outlook for the current quarter and said it had received a request from one of its largest customers to reduce shipments. The company, whose stocks plummeted over 30 percent, did not identify Apple in the notification, but Apple is Lumentum's largest customer and generates about a third of the company's revenues, according to a regulatory submission.
The alphabet, Google's parent company, decreased 2.6 percent, and Netflix's stock fell more than 3 percent.
The decline in technology shares on Monday was a reminder of the bad drops in October. Concerned about rising interest rates, trade tensions and a potential peak in corporate earnings, investors shortened the broad market down almost 10 percent at the end of September and negative territory for the year.
More recently, the shares were recycled for that reason. Wall Street jumped after Tuesday's controversial mid-term election was resolved, with the S & P 500 finished next day up more than 3.5 percent.
Monday's pain was not solely due to tech stocks.
Shares of Goldman Sachs tumbled 7.5 percent as questions related to the role the investment bank may have played in the looting of a multibillion dollar Malaysian state fund.
General Electric's share fell 6.9 percent in its fourth straight decline after comments from its new CEO failed to calm the investor's concerns.
But Apple is still an important concern. The company has a market value of over 900 billion dollars, so movements in the stock price have an excellent effect on stock indices – like the S & P 500 – which are weighted by market size.
The dynamic has most been a blessing for the stock market in recent years. Apple shares rose more than 45 percent last year.
And major technology companies have been decisive for market performance this year. From the beginning of the year through the market Sept. The 20-peak was about half the gain of the S & P 500 attributed to five major technology companies: Apple, Amazon, Microsoft, Netflix and Google's parent company, Alphabet. Throughout the last month's decline, these companies performed quite well.
But Apple's latest stumbling suggests that some investors ask questions about the great technology companies ability to continue to carry the wider markets.
Apple's roll on Monday followed another push after the revenue report November 1, when the company said it would no longer report the number of iPhones it sells quarterly. So far this month, the stock price is down at more than 10 percent.