The Dow Jones Industrial Average plummeted by 602.12 points or 2.23% at the closing bell on Monday amid a firming U.S. dollar, according to MarketWatch. The market continued to fuel into bear market territory after last week investor sentiment decline in crude-oil prices. Although the decline from last week has stabilized, the Organization of Petroleum Exporting Countries is looking to cut production to address rising crude-oil inventories.
The stronger dollar pressured investors, which led to the decline on Monday morning. The ICE U.S. Dollar Index was trading 0.5% higher or 97.43 on Monday, which is the highest level since June of 2017, according to FactSet data. The stronger dollar can potentially hurt sales of multinational companies, causing goods to be more expensive to consumers purchasing internationally.
Apple Inc. (NASDAQ: AAPL) added onto the declining market as one of its major suppliers cut its outlook, hinting at weaker shipments. Apple shares closed on Monday 5.04% lower, trading below the USD 200.00 mark again. Apple’s supplier, Lumentum, released an annual filing for its fiscal year 2018. In the filing, Lumentum only mentioned Apple as its customer and that the Company accounts for 30% of its revenue.
Feeding onto the outlook, Wells Fargo gave Apple a market perform rating and said “investors could consider Lumentum’s updated guide as reflecting as much as a 30% cut in Apple orders,” according to CNBC.
Along with Apple, Goldman Sachs’ (NYSE: GS) also plummeted. Goldman Sachs’ shares fell by 7.46%, adding onto the sharp overall market decline. The S&P 500 Index closed at 1.97% lower or fell 54.79 points. The Nasdaq Composite fell by 2.78% or 206.03 points.