2/18, 4:09 PM (Source: TeleTrader)
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Chart for: Apple Inc.

Fitch warns of 'lingering effect' of China virus on US tech

American credit rating agency Fitch Ratings warned on Tuesday that the outbreak of the coronavirus in China might have "a lingering effect" on US tech companies due to, among other things, uncertainty regarding when the virus would peak and overreliance on Chinese supply chains.

As a likely outcome of the outbreak, the agency cited "near-term revenue weakness" and slowing demand in the world's second-largest economy. Furthermore, Fitch underlined that the tech sector might experience a more disruptive effect unless the manufacturing activity in China normalizes in the next couple of weeks.

Earlier, iPhone maker Apple warned that it would fail to meet revenue targets in the second quarter due to disruptions caused by the contagious disease.

Breaking the News / GG