US stocks tank: Apple, Intel report fallout in forecasts as coronavirus sparks new fears

Across the board, US stocks fell in afternoon trading on Tuesday as telecommunications giant Apple became the latest company to warn of financial hits from the coronavirus outbreak in China.

The iPhone makers said it expects revenue to fall short of its previous forecasts in the fiscal second quarter because of stalled production and lower consumer demand for iPhones in disease-ravaged China. Apple reports that stores there are either closed or operating on reduced hours.

Technology stocks accounted for a big slice of the selling.

Apple shed 2.7%. Some chipmakers, which also rely heavily on China for sales and supplies, fell. Intel shed 1.7%.

Banks and energy stocks also fell. HSBC said it will cut 35,000 jobs and shed $100 billion in assets. Its shares dropped by 5.6%. Wells Fargo slid 2.9% and Schlumberger dropped 3.3%.

Bond prices rose. The yield on the 10-year Treasury fell to 1.55% from 1.58% late Friday. Crude oil prices fell 0.5%.

On the other end of the trading spectrum, communication services stocks and utilities held up better than most of the market. Dish Network climbed 2.8% and Xcel Energy rose 1.6%.

The S&P 500 index fell 0.4% as of 1:41 pm eastern time. The Dow Jones Industrial Average slid 212 points, or 0.7%, to 29,185. The Nasdaq dropped 0.2%. The Russell 2000 index of smaller company stocks fell 0.4%. European and Asian markets fell.