Tech stocks plunged Monday on news that the coronavirus (COVID-19) had spread outside China, including in Italy and Iran. The Philadelphia Semiconductor Index of 30 semi companies was down nearly 4% Monday afternoon.
The tech-heavy Nasdaq market was down by more than 3% at 3 p.m. ET on Monday. Apple was down by more than 3%, at $301.96. Intel and Applied Materials, both undergoing recent market surges, were down more than 2.6% and 4%, respectively, on Monday afternoon.
Apple recently noted a reduction in its financial outlook because of supply chains disruptions, and more recently Analog Devices said its current quarter revenues will be down $70 million, on an estimate of $1.35 billion.
Amphenol, which makes interconnection supplies, issued a statement that it doesn’t expect to meet its first quarter 2020 sales guidance and is “unable to quantify the full impact of COVID-19.” However, the company did say it remains “fundamentally strong” and that the China-related business disruptions are temporary.
In fact, the Monday declines were more widespread than just electronics stocks. Semis and related products, however, have led recent market surges and were especially hard hit and more broadly on Monday. Also at 3 p.m., AMD and Nvidia were down nearly 6% and Micron Technology was down more than 3%.
A broader measure of semiconductors, the Philadelphia Semiconductor Index, was down nearly 4% at 3 p.m. ET at $1,816.82, although that was higher than the Jan. 31 decline to $1,789.93.
Health officials put the number of COVID-19 cases at 79,407 in 30 countries Monday afternoon, with 2,622 deaths. Italy reported six deaths and 229 infected, while Iran reported five deaths.