Another rough and tumble day on Wall Street, as Apple suffers its steepest one day drop in six years. A rare revenue warning from Apple dragging down the entire market. The Dow sinking 660 points Thursday. And the NASDAQ tumbled into back to bear market territory, down some 20% from its record high set last year.
Wall Street's worst fears coming true as the iPhone maker slashed forecasts for the crucial holiday shopping quarter due to weak iPhone sales out of China. And that wasn't the market's only headache. The Institute for Supply Management's manufacturing index, a key reading of factory activity, showed its biggest decline in a decade.
Reuters markets correspondent, Chuck Mikolajczak.>> The combination, it's really a one two punch, right? The Apple warning,
ich is a big enough deal in itself speaks to what the whole worry was in general, right? You have a trade war affecting global growth and slowing corporate earnings growth, right?
So now you couple that with the ISM manufacturing number. And now that confirms that that global growth picture is there. So while people were worry about this stuff, now this is crystallizing everything that's going on. The earnings are getting affected, and if global growth is slowing that makes it harder for companies to make money.
>> And other parts of the economy are showing weakness as well. Delta airlines warned fourth quarter revenues will be lighter than expected due to fewer last-minute bookings than anticipated. The stock got slammed, falling 10%, dragging all its competitors lower. Investors now look ahead to the key monthly jobs report due out Friday.
But analysts warn a low hiring number will likely exacerbate economic angst. While a high number may revive fears the Federal Reserve will keep on raising interest rates, which suggests markets could drop no matter what employers did last month.