‘This is the kind of stuff that happens in a bear market’

The S&P 500 would go on to drop more than 20 percent from its record high, culminating in a plunge on Christmas Eve. It has since recouped some of those losses but it is still down 15 percent from that record. And it’s set to open much lower on Thursday following the Apple warning.

Apple said after the bell on Monday that 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. But the company also said that upgrades by customers in other countries were “not as strong as we thought they would be.”

The company had some strong things to say about the Chinese economy which could raise fears of global economic slowdown.

“While we anticipated some challenges in key emerging markets, we did not foresee the magnitude of the economic deceleration, particularly in Greater China,” Apple’s CEO Tim Cook wrote in a letter to investors on the warning on Wednesday. “We believe the economic environment in China has been further impacted by rising trade tensions with the United States.

Dow Jones Industrial Average futures opened more than 300 points lower on Wednesday evening.

This is a developing story. Check back for updates.

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