Apple woes send stocks swooning as treasuries jump

MARKETS TUMBLED THURSDAY among concern that global growth is slowing following a revised sale outlook from Apple, a decline in a factory output index and trade fears. / BLOOMBERG NEWS FILE PHOTO/NICOLE TUNG

NEW YORK – United States stocks sank after a factory gauge dropped the most in a decade and Apple cut its sales outlook, adding to concern that global growth is slowing. Treasuries rallied and the yen strengthened.

The S&P 500 Index tumbled 2.5 percent for the steepest sell-off since Christmas Eve, when the gauge fell within a few points of a bear market before embarking on a 6.8 percent rally over the next five sessions. Apple plunged the most since 2013 after citing an unforeseen slowdown in China for its woes. Ten-year Treasury yields sank to an 11-month low after a measure of U.S. manufacturing plunged last month by the most since October 2008. Bristol-Myers Squibb’s bid to buy Celgene and a strong reading on private hiring for December were shrugged off by bearish investors.

“Corporate America is getting cold feet about the outlook,” said Chris Rupkey, the chief financial economist at MUFG Union Bank in New York. “That’s what the stock market is saying with new selling and new lows after the manufacturing survey’s release.’

Here are the major stocks moves:

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Apple ended the day down 10 percent. Twenty-nine of 30 chipmakers in the Philadelphia Semi index fell, with Qorvo, Skyworks and Broadcom each off at least 8 percent. 3M, Caterpillar and DowDuPont dropped at least 3 percent. Bristol-Myers sank 14 percent, while Celgene jumped to the highest since October. Airlines tumbled after Delta cut its revenue forecast. American was off 7.5 percent.

In currency markets, the yen jumped as algorithmic programs amplified sharp gyrations amid thin liquidity during a Japanese holiday.

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