Jan. 3 (UPI) -- U.S. stocks plummeted Thursday in reaction to a warning by Apple that it will miss its quarterly sales forecast.
The Dow Jones Industrial Average fell 660.02 points, or 2.83 percent, to 22,686.22 at the end of trading, while the S&P 500 dropped 2.48 percent and the Nasdaq Composite slid 3.04 percent.
Apple's stock fell 9.96 percent after CEO Tim Cook said told investors Wednesday the company lowered its revenue guidance to $84 billion from the $89 billion to $93 billion it had previously projected.
Cook cited a range of issues including a weakening economy in China and lower than anticipated iPhone sales as a reason for the decision.
Fallout from the Apple news also caused chip stocks such as Advanced Micro Devices, Nvidia and Qorvo to fall, along with Skyworks which dropped more than 10 percent. Semiconductors including VanEck Vectors Semiconductor ETF, which fell 6 percent, were also affected.
Apple's announcement also contributed to ongoing fears about trade relations between the United States and China, causing other companies that do business in the country to experience losses, including Caterpillar and Boeing, which both fell about 4 percent.
Thursday's declines were also a result of concern among investors over the largest one-month decline in U.S. factory activity since the Great Recession.
The Institute for Supply Management's manufacturing index fell to 54.1 in December from 59.3 in November, marking a two-year low.