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Tech Investors Jolted by Apple Pin Hopes on a Fast Turnaround

  • Cut forecast comes with the Nasdaq 100 already up 10% in 2020
  • Traders try to determine how much of virus impact is temporary
Quiet Financial and Shopping District As Markets Reopens to Crisis After Break
Photographer: Qilai Shen/Bloomberg
Updated on

Tech stock futures fell as traders worked to price in the impact of a revenue shortfall at a company responsible for more than a tenth of the S&P 500’s gain over the last year.

While Apple Inc. described the impact of the coronavirus on its sales as “temporary,” slips among big tech companies sit uneasily with investors who have watched many stocks soar 50% or more over the past 12 months. The iPhone maker has a 12% weighting in the Nasdaq 100 Index, which closed last week at 29.4 times annual earnings, the highest in a decade.