Apple and Boeing's disappointing forecasts dragged down US stock indexes on Wednesday, as anxious investors awaited the Federal Reserve's statement on monetary policy. Apple's shares were down 5.3 percent at $94.67 after the company also reported its slowest-ever rise in iPhone shipments on Tuesday. The stock was the biggest drag on the S&P 500 and the Nasdaq, and was set for its biggest fall since August.
Boeing sank 9.5 percent to $115.90, its biggest single-day fall since October 2001, and was the biggest negative influence on the Dow. Apple and Boeing combined accounted for 105 points of the Dow's near 120-point decline. "When you particularly see big group of companies like Apple and Boeing, and their disappointing guidance, it has a profound impact on the market as a whole," said James Abate, chief investment officer of Centre Funds.
"Furthermore, I think it relates to the fact that stocks are going to trade more in line with earnings than they will with regard to interest rates or Fed policy," he said. At 11:00 am ET (1600 GMT), the Dow Jones industrial average was down 130.67 points, or 0.81 percent, at 16,036.56, the S&P 500 was down 11.17 points, or 0.59 percent, at 1,892.46 and the Nasdaq Composite index was down 52.20 points, or 1.14 percent, at 4,515.47. Seven of the 10 major S&P sectors were lower, led by the 1.7 percent fall in tech stocks.
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