US stocks dropped on Tuesday as a trio of mega-cap tech giants continued their recent sell-offs.
Shares of Apple declined by about 3% and briefly traded below $170 as investors grew concerned about its exposure to China and weakening iPhone sales in the region. Research firm Counterpoint said iPhone sales plunged 24% in China in the first six weeks of the year, while competitor Huawei saw its popularity rise in the country.
Tesla stock fell about 4% on Tuesday, extending its 7% decline on Monday, as February vehicle sales in China showed a 19% year-over-year decline for Tesla. The EV-maker sold 60,365 vehicles in China last month, representing its lowest month of sales in the country since December 2022, according to data from the China Passenger Car Association.
Finally, shares of Alphabet were weak in Tuesday trades, dropping about 1% and extending its 3% decline from Monday as investors continue to question where the company stands in the AI race following its botched rollout of Gemini.
Here’s where US indexes stood at the 4:00 p.m. closing bell on Tuesday:
The Dow Jones Industrial Average fell 0.68% to 33,174.76 points. The S&P 500 dropped 0.72% to 4,173.11 points. The tech-heavy Nasdaq Composite declined 1.23% to 12,244.50 points.
Investors are closely watching the tech sector as concerns about China’s impact on sales and the competitive landscape in artificial intelligence continue to weigh on these mega-cap companies.
Despite the sell-offs, analysts remain optimistic about the long-term prospects of these companies, citing strong fundamentals and growth potential in key markets.
As the market continues to navigate these challenges, investors will be closely monitoring any developments that could impact the performance of these tech giants in the coming days.
