US stocks gave up their early gains on Monday afternoon after reports about slowing spending at tech group Apple reignited concerns about a potential recession.

The S&P 500, which had risen as much as 1 per cent earlier in the day, swung to a 0.8 per cent decline after Bloomberg reported that America’s most valuable company was planning to slow hiring and spending growth in some divisions. The Nasdaq Composite also slid 0.8 per cent.

Fears about a potential recession have been hanging over markets in recent weeks as the Federal Reserve struggles to tame inflation without pushing the US economy into contraction. Solid retail sales data provided some reassurance last Friday, but the report about Apple suggested worries are growing even at companies that have successfully weathered previous downturns.