S&P500 posts worst day since June
The S&P 500 suffered its worst day since June on Tuesday, pulled lower by Caterpillar Inc after it cut its profit outlook, the latest high-profile company to warn about profit growth.
Technology shares came under pressure after a second day of weakness for Apple Inc, the world’s most valuable public company. Shares fell 2.5 per cent to $US673.54 as the company sold out of its initial supply of the new iPhone, raising concerns about keeping up with demand.
Caterpillar, the heavy equipment maker, said on Monday sluggish global growth was responsible for reduced estimates. Other companies to recently cut expectations include FedEx Corp and Norfolk Southern.
Shares of Caterpilar were the biggest weight on the Dow for a second day and ended down 4.2 per cent at $US87.01. That was the stock’s biggest daily per centage drop since May.