Apple’s China Troubles Catch Fund Managers Chasing Rally
- Fund managers are heavily overweight the sector, BofA says
- That could rob market of dip buyers trying to make up ground
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For months, megacap tech shares powered US stocks to dizzying gains. The market’s engine is now starting to sputter.
The latest sign of trouble came from Apple Inc., where reports that China plans to expand a ban on the use of iPhones in some government agencies sent shares to the worst two-day drop in a month. Apple suppliers such as Qualcomm Inc. and Skyworks Solutions Inc. sank more than 7% Thursday, while Microsoft Corp. and Nvidia Corp. remained under pressure.