Apple share plunge knocks wider tech stocks in New York

A plunge in Apple (NasdaqGS: AAPL - news) 's share price has helped spark another session of selling on Wall Street.

Apple's market value fell by 5% on Monday to a level not seen since July after two of its biggest suppliers cut their full-year forecasts.

That initiated a sell-off in other iPhone component makers while the ugly mood later spread across US stock markets with the Nasdaq Composite - mainly made up of technology firms - down 2.8% by the close.

The Dow Jones was also off by 2.3%.

Market experts pointed to the Veterans Day closure of US bond markets exacerbating the negative sentiment for stocks.

President Donald Trump blamed falls on the Democrats' gains in last week's mid-term elections .

There was a costly correction in values worldwide last month , which some commentators said signalled the end of the bull run of recent years in the US.

It helped take Apple's market capitalisation above $1tn earlier in 2018, though it has since slipped back to $970bn.

The value drain in October was blamed on several factors including rising US interest rates and the effects of Mr Trump's trade war with China.

Lumentum Holdings (NasdaqGS: LITE - news) , which supplies Apple's Face ID technology, said before the market opened that it had trimmed its revenue and profit expectations because a major customer, which it did not name, had reduced its orders.

Screen maker Japan Display (Other OTC: JPDYY - news) was the other firm to lower investors' expectations.

It raised fears in Apple shareholders, traders said, that its own revenue forecasts issued last month could come up short.

Lumentum shares closed over 30% lower.

A rebound in oil prices had offered some relief to energy stocks earlier but they later succumbed to the broader selling pressure after Mr Trump urged Saudi Arabia and the wider Opec group of oil-producing nations not to cut output to raise prices.

Banks and consumer-facing stocks also fell sharply.