(CNBC) U.S. stocks fell sharply on Thursday following a dire quarterly warning from Apple and the release of weaker-than-expected manufacturing data. The iPhone maker blamed a slowing Chinese economy for the shortfall, intensifying fears that the global economy may be slowing down.
The Dow Jones Industrial Average dropped 568 points, or 2.4 percent, as Apple shares led the decline. The S&P 500 pulled back 2 percent as the tech sector fell 4.4 percent. The Nasdaq Composite 2.5 percent as Apple's stock dropped 9.3 percent.
Apple said it sees first-quarter revenue of $84 billion vs. a previous guidance of a range of $89 billion and $93 billion. Analysts expected revenue of $91.3 billion for the period, according to the consensus estimate from FactSet. Apple blamed most of the revenue shortfall for struggling business in China.
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