Fitch: Coronavirus adds additional risks to US technology sector's China-centric supply chains

Eren Sengezer FXStreet

Coronavirus supply chain issues may have a lingering effect on the US technology sector, Fitch Ratings said on Tuesday, as reported by Reuters.

"Near-term revenue weakness caused by supply chain disruptions and reduced demand in China is a likely outcome for the US technology companies," the report read. "COVID-19 adds additional risks to the US technology sector's china-centric supply chains."

Fitch further noted that the impact could be more disruptive is the coronavirus situation drags into March and April.

Tech shares underperform on Tuesday

The S&P 500 Technology Index is down 0.6% in the early trade. Apple shares, which warned that sales in Q1 could fall short of its target amid coronavirus, are leading the losers with a 2.5% drop.

Author

Eren Sengezer

FXStreet

As an economist at heart, Eren Sengezer specializes in the assessment of the short-term and long-term impacts of macroeconomic data, central bank policies and political developments on financial assets.

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