Stock market news: Global equities tumble on tech turmoil

It’s
a brutal day in global stock markets, led by falling tech
shares.

Eduardo
Munoz Alvarez/Getty Images

• Global stock markets are selling off on Tuesday, as the
  tech slump which gripped US equities on Monday spreads around
  the world.
• US stocks
  plummeted on Monday, with the tech-focused Nasdaq index losing
  more than 3%.
• Those falls have extended into Asia and Europe, where
  most major indexes are down 1% or more. China’s benchmark share
  index dropping 2%.
• US futures markets point to a continued sell-off
  stateside once trading resumes later on.
• You can follow
  the latest price action at Markets Insider.

Global stock
markets are selling off on Tuesday, as the tech slump which
gripped US equities on Monday spreads around the world.

Monday’s biggest casualty was the Nasdaq, which closed more
than 3% lower, dragged down by mega-cap technology companies, as
Wall Street worries about global growth and trade tensions amid a
quiet week for economic data.

Monday’s sell-off on Wall Street appears to have been
largely triggered by a report from the Wall Street Journal that
Apple has slashed production orders in recent weeks for all
three of its new iPhones unveiled in September.

Meanwhile, the S&P
500 fell 1.8% and the Dow Jones Industrial
Average shed 1.6%, or nearly 400
points.

Wall Street’s sell-off spread into Asia overnight, with
benchmark indexes in Japan and China falling substantially.
China’s most-watched index, the Shanghai Composite, fell 2.1%,
while Japan’s Nikkei was 1.1% lower at the close.

As the morning began in Europe, stocks on the continent
also fell, and after around an hour of trading, Germany’s DAX
has dropped 1.2%, while the Euro
Stoxx 50 index is just shy of 1% lower.

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“Monday’s sharp sell-off in US technology shares is a
reflection of investor concerns over global demand following the
recent emerging market currency crises and trade disputes,” Fawad
Razaqzada, analyst at Forex.com, said in an email Tuesday
morning.

“So, as things stand, the outlook for global equity indices
appears bleak and we could easily witness further falls,” he
added.

That suggestion looks likely to be correct, with futures
pointing to another day in the red for US stocks. As of 9.00 a.m.
GMT (4.00 a.m. ET), futures for all three US indexes are at least
0.6% lower.

Here’s the scoreboard:

• Nasdaq futures down 1%; S&P 500 down 0.7%; Dow
  Jones Industrial Average down 0.6%
• Shanghai Composite Index closed down 2.1%, while the
  Shenzhen Composite was 2.8% lower
• Benchmark Euro Stoxx 50 down 1%; Germany’s DAX is 1.1%
  lower; Britain’s blue-chip FTSE 100 is down 0.6%.
• Indexes in Spain, Italy, and France are all more than
  1% lower.
• Both major oil benchmarks, Brent and WTI, are down more
  than 1%, with Brent trading at $66.02 per barrel, and WTI at
  $56.64.

Lower production by Apple tends to suggest falling demand for its
products, which in turn acts as a bellwether for general
sentiment surrounding the tech sector. Shares of the
world’s biggest technology company are down more than 10% this
month as a result.