The technology sector pulled the rest of markets into the red on Thursday, Sept. 21, as Apple Inc. (AAPL) continued to deal with the fallout from a tech glitch in its latest product.
Apple tumbled on Wednesday, Sept. 20, after connectivity issues with its Series 3 Watch came to light. The Series 3's biggest selling point has been that it is the first of its kind that has built-in cellular capabilities, meaning it doesn't have to be tethered electronically to a cellphone to operate on the network.
A reviewer from The Verge said the watch had "notable connectivity issues" and appeared to connect to unknown Wi-Fi networks instead of operating on LTE when out of range from the user's phone as advertised.
Apple has pulled back significantly from its Tuesday, Sept. 12, press event where it unveiled the new Apple Watch and the next-generation iPhone, including a model with a $1,000 price tag. Apple shares tend to drive higher in anticipation of a press event and then retreat. Since the Tuesday event, shares have dropped roughly 5%.
Apple shares were down more than 1% on Thursday. Other tech stocks including Amazon.com Inc. (AMZN) , Micron Technology Inc. (MU) , Alibaba Group Holding Ltd. (BABA) and Broadcom Ltd. (AVGO) moved lower. The Technology Select Sector SPDR ETF (XLK) declined by 0.5%.
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