US stock index futures fell sharply on Thursday after Apple Inc stunned investors with its first sales warning in more than a decade, deepening fears about a slowdown in China’s economy and its impact on corporate profits.
Apple’s shares tumbled 8.8 percent in premarket trading after the iPhone maker slashed its holiday-quarter revenue outlook due to slowing iPhone sales in China, sparking fresh concerns over the fallout from the Sino-US trade war ahead of the US earnings season.
“This provides solid evidence of how slowing economic growth and a trade war make the best death cocktail for sentiment,” said Naeem Aslam, chief market analyst at Think Markets UK Ltd in London.
At 6:26 am ET, Dow e-minis were down 371 points, or 1.59 percent. S&P 500 e-minis were down 41.25 points, or 1.64 percent and Nasdaq 100 e-minis were down 172.75 points, or 2.71 percent.
The warning from Apple, whose stock is a member of all the three major indexes,…