Apple shares drop again Tuesday

Apple shares touched their lowest level since June 2021 on Tuesday, amid an ongoing selloff of big-tech stocks amplified by concerns over iPhone supply in the key holiday period.

While Apple remains a modest outperformer for 2022, with a 27% decline that is narrower than the 33% drop of the Nasdaq 100 Index, it has lagged the tech-heavy gauge over the past month.

Recent weakness has come as production halts in a major iPhone plant in China contribute to a supply shortfall of Apple’s flagship product.

Earlier on Tuesday, JPMorgan wrote that iPhone supply is “improving and inching slowly towards parity with demand,” although it added that Apple is typically “much further along in reaching parity between iPhone demand and supply” at this time in the year.

Tech companies drag on stocks

Tech dragged stocks lower as Treasury yields climbed, with markets digesting prospects for growth and inflation from China’s rollback of COVID isolation measures.

The S&P 500 fell on thin volumes, with trading about 20% below the 30-day average.

The tech-heavy Nasdaq 100 underperformed, dropping more than 1%.

Southwest Airlines led declines in airline stocks after canceling flights, hobbled by a massive winter storm that battered the U.S.

From wire reports