Mizuho Securities had cut its rating on Apple to “neutral” from "buy” on Monday, saying the stock had outperformed this year and that the “upcoming product cycle is fully captured at current levels.” Apple shares, down 2.4 per cent on Monday, are up about 26 per cent so far in 2017.
The S&P technology sector fell 0.8 per cent after dropping 2.7 per cent on Friday for its largest two-day decline in nearly a year.
The tech-heavy Nasdaq Composite underperformed the S&P 500 as the ongoing rout in the sector sparked a search for value elsewhere.
Despite the flailing leadership in tech stocks, Brian Jacobsen, chief portfolio strategist at Wells Fargo Funds Management in Menomonee Falls, Wisconsin, said he is not too worried about it becoming a broader market selloff.
The Dow Jones Industrial Average fell 36.3 points, or 0.17 per cent, to 21,235.67, the S&P 500 lost 2.38 points, or 0.10 per cent, to 2,429.39 and the Nasdaq Composite dropped 32.45 points, or 0.52 per cent, to 6,175.47.