Every year in early autumn Apple holds its event where it presents new iPhones, Apple Watches, and iPads. This year wasn’t an exclusion. But yesterday’s presentation didn’t result in Apple stock growth, and here’s why.
American equities rebound on Powell’s remarks
On Friday, US equities rebounded following a firm payrolls report as well as remarks from Fed Chair Jerome Powell who suggested that the Fed would be quite flexible with its monetary policy.
All three key American stock indexes more than just recovered ground lost in the broad sell-off on Thursday, tacking on by over 3% and setting up the indexes to report weekly profits at the end of the first week of 2019.
As for technology equities SPLRCT, they led the charge, soaring by 4.3%, rebounding from the previous session's worst day for the sector for more than seven years.
According to the Labor Department's employment report, in December, the American economy generated up to 312,000 new jobs, which is far more than the 177,000 expected by experts.
Powell had market nerves soothed with assurances that the key financial institution appears to be sensitive to risks that worry traders and it’s not on a preset path of interest rate lifts.
News that next week China and America would hold trade negotiations in Beijing assisted tariff-vulnerable industrials to lead the Dow's surge, headed by United Technologies Corp, Caterpillar Inc, Boeing Co, 3M Co, and United Technologies Corp.
The Dow Jones Industrial Average managed to inch up by 3.13% being worth 23,396.9. As for the S&P 500, it tacked on by 3.19% reaching 2,525.95, while the Nasdaq Composite surged by 4.15% trading at 6,731.99.
All 11 key sectors of the S&P 500 found themselves in positive territory, with communications services, consumer discretionary, materials, and technology equities boasting the greatest percentage profits.
As for Apple equities, they went up by 3.9% and led the tech sector's rally as the iPhone manufacturer started recovering ground lost after Wednesday’s warning of a holiday quarter profit shortfall.
Netflix managed to inch up by 8.8%.
Richard Branson offloaded nearly 10 million shares, which equals about 4% of the Virgin Galactic stock, leaving him with an 18% stake.
Today at 00:00 GMT+3 SPCE will present the second quarter 2021 financial results. We will get to know everything about the company's financial condition and plans.
Main news that will drive the market in the upcoming week include CB Consumer Confidence Index, Canadian GDP, and US Core PCE Price Index
The Federal Reserve (Fed) will announce its Interest Rate Decision and make a statement about the future monetary policy on Wednesday, September 21, GMT+3. After the higher-than-expected inflation numbers published on September 13, there’s almost no doubt the Federal Reserve will come up with another 75-basis-point rate hike. However, surprised by the CPI numbers, several Fed members announced the possibility of a 100-basis-point rate hike on Wednesday.
Every week we expect many interesting events that can shake the market.