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