Big drops among tech giants on Wall Street – Apple fell 4.9 percent

Big drops among tech giants on Wall Street - Apple fell 4.9 percent

Thursday ended up being another heavy day for US stock markets. When the stock market closed at 10 p.m., the results of the trend-setting indicators in the United States were as follows:

  • The broad S&P 500 index fell 2.1 percent.
  • The Dow Jones Industrial Average fell 1.5 percent.
  • Technology stocks index, Nasdaq, fell 2.8 percent.

Low Tic Wide

Shares of Apple Inc., the world’s largest company by market value, fell 4.9 percent to $142.4 a share. This means shareholder value exceeded $110 billion on the day, and Apple stock was the most heavily traded stock in the US stock market on Thursday. The price drop came after major bank Bank of America lowered its target rate from $185 to $160, he writes CNBC.

Analysts said they expected “weak consumer demand” next year, and the statement comes on the heels of a Bloomberg article Who said that Apple is withdrawing from the company’s plans to ramp up production of the new iPhone 14 series.

The company is said to have asked its subcontractors to drop a production increase corresponding to six million phones in the latter half of 2022. The company instead aims to produce 90 million phones in this period, in line with both last year’s production and what the company has envisioned itself Before the launch of the iPhone 14 series.

And while some analysts were skeptical yesterday about this, and considered it part of a game to increase prices, today other investment banks are issuing negative and updated analyzes of the stocks. The aforementioned Bank of America downgraded Apple’s stock from buy to neutral.

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Meanwhile, Apple isn’t the only tech company that fell Thursday. Tesla shares ended 6.8 percent lower, while shares of Meta and Alphabet owner Google and Amazon fell 3.7, 2.6 and 2.7 percent, respectively.

Macro numbers are better than expected

Thursday also saw fresh macroeconomic numbers from the US – both of which are in nature to cast the curtain on fresh rate hikes from the US central bank. First, personal consumption and personal purchases figures were stronger than expected, and second, the number of unemployed people applying for Social Security, which is updated weekly, was the lowest since April.

—The market has descended to a level where the idea of ​​recession is taken for granted, so to speak, and it is already adjusting to this, says Shane Snyder, investment strategist at Citi US Wealth Management for Bloomberg.

– You also have the turmoil in Great Britain, which hits British government bonds and causes the currency to fall due to the new fiscal policy that creates inflation in the country. Then you have Nord Stream plus, with subversion that could make things worse. “I think all of this together creates a lot of tension,” he said.

swings through Wednesday

Wednesday’s trading day opened and market participants were somewhat hesitant, but sent the indicators upward throughout the afternoon and evening. The reason is the signals from the Bank of England, which announced that the central bank will buy bonds to stabilize the pound. So investors breathed a sigh of relief, and the S&P 500 finally rose 2.0 percent. The Dow closed up 1.9 percent and the Nasdaq rose 2.1 percent.

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The Nasdaq has fallen for five consecutive days prior to Wednesday.

He writes that precisely what central banks are doing is about to create more trouble for investors Bloomberg.

For a long time, the vast majority of central banks had the same clear tightening line – but the Bank of England’s new actions aimed at bolstering bonds and attempts by Asian central banks to prop up less valuable currencies are now diverging from that line. At the same time, the Fed is crystal clear that rate hikes and tightening will continue – something it reiterated as recently as Thursday.

Market participants now realize this, said James Bullard, president of the Federal Reserve Bank of St. Louis, according to Bloomberg, adding that the Fed would not allow itself to be affected by what happened in financial markets this week – including the turmoil in Britain’s bond market. Great.

– He said it mostly has to do with the financial markets having to price the fluctuations you see in Great Britain, and then having a certain effect on the markets in the United States for that reason.

“I can’t see this having an impact on US inflation or the evolution of real growth,” he added.(Conditions)Copyright Dagens Næringsliv AS and/or our suppliers. We would like you to share our cases using links that lead directly to our pages. All or part of the Content may not be copied or otherwise used with written permission or as permitted by law. For additional terms look here.

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Dalila Awolowo

Dalila Awolowo

"Explorer. Unapologetic entrepreneur. Alcohol fanatic. Certified writer. Wannabe tv evangelist. Twitter fanatic. Student. Web scholar. Travel buff."

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