Apple stock was down 3.3% at market close on Wednesday.
That’s a lot for any company, but Apple is the world’s most valuable company by market cap, and the drop wipes out billions in shareholder value.
Apple shares closed at $150.25 as opposed to $155.47 at close on Tuesday.
Apple stock was up 34% this year on anticipation that the next iPhone could spur a “super cycle” of sales as well as hopes that federal tax reform could enable Apple to bring home some of its $240 billion in cash and marketable securities that are held outside the United States at lower tax rates.
Apple’s CFO Luca Maestri has suggested that if the company were able to repatriate some of its overseas holdings at a lower tax rate, it would return some of the money to its shareholders.
But recent developments in Washington DC, especially allegations that President Trump may sought to end the FBI’s investigation into former National Security Adviser Michael Flynn, have reduced the chance that tax reform is imminent.
The Nasdaq 100 was down 2.3% and 100 of the 107 stocks in the index fell on the day.