U.S. stocks tumbled on Wednesday as steep losses in Apple shares coupled with a decline in major bank shares weighed on the market.
The Dow Jones Industrial Average decreased 205.99 points, or 0.81 percent, to 25,080.50. The S&P 500 was down 20.60 points, or 0.76 percent, to 2,701.58. The Nasdaq Composite Index slid 64.48 points, or 0.90 percent, to 7,136.39.
Apple shares dropped 2.82 percent and closed at 186.78 U.S. dollars per piece. The stock dipped into a bear market as it traded more than 20 percent below its recent all-time high. The decline came after it was downgraded Wednesday by a Guggenheim Partners analyst who predicted a 5 percent decline in iPhone sales in 2019.
Major U.S. financial stocks also retreated after Democratic Congresswoman Maxine Waters said the Trump administration's efforts to curb banking regulations "will come to an end." Shares of JP Morgan Chase and Goldman Sachs slid 2.06 percent and 1.25 percent, respectively, in late trading.
Nine of the 11 primary S&P 500 sectors closed lower, with tech and financials down 1.38 percent and 1.29 percent, respectively, leading the laggards.
Shares of utility PG&E plunged more than 21 percent. The compansaid its insurance would not cover the cost if it is found responsible for the raging Camp Fire in the U.S. state of California. Investigation into the cause of the fire is still underway.
Wall Street also kept a close eye on the inflation data.
U.S. Consumer Price Index (CPI) rose 0.3 percent in October, boosted by gains in the cost of gas, rent and used vehicles, the Labor Department said Wednesday. The reading was in line with expectations.
The yearly increase in the closely watched core CPI, which strips out food and energy costs, dipped to 2.1 percent from 2.2 percent, lower than estimates.
These data came as a relief for investors as they have been concerned over the uptick interest rates. The Federal Reserve has raised rates three times this year and is forecast to hike once more before the end of the year.
The Dow Jones Industrial Average decreased 205.99 points, or 0.81 percent, to 25,080.50. The S&P 500 was down 20.60 points, or 0.76 percent, to 2,701.58. The Nasdaq Composite Index slid 64.48 points, or 0.90 percent, to 7,136.39.
Apple shares dropped 2.82 percent and closed at 186.78 U.S. dollars per piece. The stock dipped into a bear market as it traded more than 20 percent below its recent all-time high. The decline came after it was downgraded Wednesday by a Guggenheim Partners analyst who predicted a 5 percent decline in iPhone sales in 2019.
Major U.S. financial stocks also retreated after Democratic Congresswoman Maxine Waters said the Trump administration's efforts to curb banking regulations "will come to an end." Shares of JP Morgan Chase and Goldman Sachs slid 2.06 percent and 1.25 percent, respectively, in late trading.
Nine of the 11 primary S&P 500 sectors closed lower, with tech and financials down 1.38 percent and 1.29 percent, respectively, leading the laggards.
Shares of utility PG&E plunged more than 21 percent. The compansaid its insurance would not cover the cost if it is found responsible for the raging Camp Fire in the U.S. state of California. Investigation into the cause of the fire is still underway.
Wall Street also kept a close eye on the inflation data.
U.S. Consumer Price Index (CPI) rose 0.3 percent in October, boosted by gains in the cost of gas, rent and used vehicles, the Labor Department said Wednesday. The reading was in line with expectations.
The yearly increase in the closely watched core CPI, which strips out food and energy costs, dipped to 2.1 percent from 2.2 percent, lower than estimates.
These data came as a relief for investors as they have been concerned over the uptick interest rates. The Federal Reserve has raised rates three times this year and is forecast to hike once more before the end of the year.
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