“A technology sector rally fizzled Monday as shares of Apple Inc. sank on news that China Telecom was cutting back subsidies for the iPhone,” Benjamin Pimentel reports for MarketWatch.

“Tech stocks began the day by joining a market rally on news that former Treasury Secretary Lawrence Summers had withdrawn his name from consideration for the top post at the Federal Reserve,” Pimentel reports. “But the sector was later weighed down by Apple Inc., which shed 3.2% to close at $450.12. The Wall Street Journal reported that China Telecom Corp. was cutting back on subsidies of the iPhone that suggests users will have to pay more upfront for the iPhone 5S than those who bought the iPhone 5 last year.”

Read more in the full article here.