NEW YORK: US markets have suffered a second day of steep losses, as investors dumped health care companies and Apple. The blue chip Dow Jones Industrial Average sank nearly 1.4%, marking its biggest one-day decline in months.
The fall followed the news that Amazon, JPMorgan Chase and Berkshire Hathaway would create a new healthcare company with the aim of lowering health costs for their US employees. Bond yields also rose, reflecting last year’s three US interest rate hikes.
UnitedHealth Group and Pfizer were the two biggest losers on the Dow, while the insurance company Anthem saw the steepest losses on the S&P 500. Those are among the firms that would be threatened by the emergence of a major new competitor – or signs of a government crackdown on drug prices promised by US President Donald Trump.
Apple dipped 0.6% on reports of weak demand for its latest iPhone, and energy firms also came under pressure. But the losses were widespread, touching nearly every sector. The Dow closed down 362.59 points at 26,076.89, while the wider S&P 500 fell 31.1 points or 1.09%.
The tech-heavy Nasdaq shed 64 points or 0.86% to 7,402.48.
Meanwhile, the closely watched Vix index, which measures volatility based on options prices, also shot up after months of calm, in what some investors say is a sign that more market fluctuation could be coming.
