Apple Leads Nasdaq Lower Amid Chinese COVID protests

U.S. stocks tumbled Monday amid growing unrest in China over the country’s zero-tolerance COVID restrictions and its effects on supply chains and U.S. companies’ operations.

The Dow Jones Industrial Average fell 497.37 points, or 1.45%, to close at 33,849.66. The S&P 500 fell 62.10 points, or 1.54%, to close at 3,964.02, and the Nasdaq Composite fell 176.86 points, or 1.58%, to close at 11,049.50.

Rare public protests broke out across China over the weekend after a surge of COVID cases prompted local governments to tighten restrictions, including widespread stay-at-home orders. The restrictions and protests are raising concerns that the world’s second-biggest economy could experience disruptions, impacting supply chains and U.S. companies operating in China.

Workers at the biggest iPhone factory in the world clashed with Chinese authorities last week and analysts estimate the unrest could cause a production shortfall of 6 million units. Shares of Apple (APPL) closed at $144.22, down $3.89, or 2.63%.

Some stocks that declined Monday included Alphabet (GOOG), which closed at $96.25, down $1.35, or 1.38%. Meta Platform’s (META) price of shares fell $2.63, or 2.36%, to close at $108.78.

“The negative headlines from abroad are putting pressure on domestic markets,” Charlie Ripley of Allianz Investment Management told CNBC. “I anticipate we’ll have more volatility and more activity in the markets as we go through the rest of the week, looking at the economic calendar.”