U.S. stocks fell on Thursday after a major Asian chipmaker delivered a disappointing forecast which dragged the technology sector lower. Investors also fretted over rising interest rates.
The Dow Jones industrial average closed 83.18 points lower at 24,664.86, with Apple among the worst-performing stocks in the index. The S&P 500 declined 0.6 percent to 2,693.13 with technology and consumer staples falling 1.1 percent and 3.1 percent, respectively. The Nasdaq composite dropped 0.8 percent to 7,238.06.
The major indexes pared losses in the last hour of trading after Bloomberg News reported that Deputy Attorney General Rod Rosenstein told President Donald Trump last week he is not the target of an investigation by special counsel Robert Mueller. Trump has told associates he no longer wants to fire Rosenstein now, the report said.
Taiwan Semiconductor Manufacturing (TSMC) said Thursday it expects second-quarter revenue to range between $7.8 billion and $7.9 billion, well below a Wall Street consensus estimate of $8.8 billion.
The announcement weighed on the entire technology sector. Shares of Apple fell 2.8 percent, while Nvidia, Micron and Advanced Micro Devices all declined at least 2.4 percent. The VanEck Vectors Semiconductor ETF (SMH) dropped 4.5 percent in its worst day since Dec. 1, 2016.