By Sruthi Shankar
The iPhone maker fell 3.8 percent after laser sensor maker Lumentum Holdings Inc slashed its forecast, saying a large unnamed customer had materially cut orders, while screen maker Japan Display Inc lowered its full-year outlook on weaker demand from smartphone makers.
Lumentum plunged 30.9 percent and shares of other iPhone suppliers including chipmaker Cirrus Logic Inc, Qorvo Inc and Skyworks Solutions Inc fell between 3 percent and 10 percent.
The S&P 500 Information Technology index fell 2.0 percent, while the Philadelphia SE Semiconductor index dropped 3.3 percent.
U.S. stock futures earlier held steady as Brent crude prices rose 0.9 percent after Saudi Arabia, the world's largest oil exporter, said it would cut its shipments in December.
The S&P 500 Energy index rose as much as 0.3 percent before turning lower.
"Oil seems to be causing some jitters right now because they have been volatile," said Randy Frederick, vice president of trading and derivatives for Charles Schwab in Austin, Texas.
"It should help energy stocks yes, but whether or not it helps the overall market, that correlation is not clear a whole lot of times."
Investors are also headed into a week that is heavy on retail earnings from companies including Walmart Inc
Reports from a host of major U.S. companies have shown the impact of tariffs and a slowdown in China on corporate profits. Earnings from major retailers are expected to show how rising wages are eating into margins.
Wage pressures could increasingly be an issue as earnings-per-share growth for S&P 500 companies is expected to slow to about 9 percent next year following 2018's tax cut-fueled earnings gains of about 24 percent, according to IBES data from Refinitiv.
At 10:00 a.m. ET the Dow Jones Industrial Average was down 204.55 points, or 0.79 percent, at 25,784.75, the S&P 500 was down 24.47 points, or 0.88 percent, at 2,756.54 and the Nasdaq Composite was down 115.71 points, or 1.56 percent, at 7,291.19.
Nine of the 11 major S&P sectors were lower, with slight gains seen in the defensive real estate and utilities sectors.
Tobacco companies Altria Group Inc fell 3.2 percent and Philip Morris International Inc dropped about 1.9 percent after reported that the U.S. health regulator is planning to pursue a ban on menthol cigarettes.
Athenahealth Inc rose 9.5 percent after private equity firm Veritas Capital and hedge fund Elliott Management agreed to acquire the healthcare software maker for $5.5 billion in cash.
Apptio Inc soared 51.6 percent after the software company agreed to be bought by private equity firm Vista Equity Partners for $1.94 billion.
Declining issues outnumbered advancers for a 1.80-to-1 ratio on the NYSE and a 2.51-to-1 ratio on the Nasdaq.
The S&P index recorded 23 new 52-week highs and eight new lows, while the Nasdaq recorded 10 new highs and 60 new lows.
(Reporting by Sruthi Shankar in Bengaluru; Editing by Shounak Dasgupta)
(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)