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Jan. 3, 2019 / 2:36 PM GMT / Updated Jan. 3, 2019 / 9:06 PM GMT
By Lucy Bayly
The Dow Jones Industrial Average closed sharply down on Thursday as investors digested some of the strongest indications yet that President Donald Trump’s protectionist policies are having a negative impact on American companies and the broader global economy.
The Dow Jones Industrial Average closed down 660 points, the broader S&P 500 fell by almost 2.5 percent, and the tech-heavy Nasdaq was down 3 percent.
Markets were dragged down by Apple’s shock announcement that it was slashing its guidance for the most recent quarter. Shares in the tech giant fell almost 10 percent on Thursday, marking the worst single-day loss for the iPhone maker in six years.
Apple Chief Executive Officer Tim Cook warned Wednesday in a public letter to investors that sales were impacted by a slowdown in China, telling CNBC in an interview that “the trade tensions between the United States and China put additional pressure on their economy.”
Apple made history in 2018 by becoming the first public U.S. company to have a valuation of $1 trillion — a crown it quickly lost in the last quarter of the year when shares fell by 30 percent — or $450 billion — as concerns mounted that the latest generation of iPhones would not have the usual robust holiday sales.
From Ford to FedEx, and Gucci to GM, Apple is just the latest company to warn that trade tensions are hitting its bottom line. Ford’s Chief Financial Officer Bob Shanks told NBC News in October that Trump’s auto tariffs have impacted the company to the tune