The so-called “stock market bloodbath” has continued on Friday with major indices falling down to the lows of the last October. What's going on?
American futures go down
On Monday, American futures generally declined because Apple equities were affected by fears of decelerating demand for iPhones, and new signals of a potential escalation in the China-US trade conflict also contributed to market jitters.
Apple equities slumped by almost 1.5% right after the Wall Street Journal informed that the company has diminished output orders for recent weeks for all three iPhone models, which were officially launched in September.
This month the iPhone maker's stock has dived by 11.6% after the company's lower-than-anticipated sales estimate for the holiday quarter as well as a bunch of dismal estimates from several of its suppliers.
Moreover, Micron Technology Inc went down by about 2%.
In addition to this, the Dow e-minis went down by nearly 0.35%. As for S&P 500 e-minis, they declined by approximately 0.37%, while Nasdaq 100 e-minis decreased by 0.4%.
Over the weekend, at a meeting in Papua New Guinea Asia-Pacific leaders didn’t manage to agree on a joint communiqué. That’s the first such a case. Furthermore, US-China trade clashes are on the forefront once again.
As American Vice President Mike Pence told, there would be no end to American lives on $250 billion of China’s products until this Asian country changed its trade policy. The given statement heavily affected Friday's trade optimism. What’s more, it was also worsened by American leader’s outrageous comments.
As a matter of fact, China's JD.com Inc headed south by 5.9% having posted third-quarter profit, which fell short of experts’ forecasts on poor sales in its core e-commerce niche.
Aside from that, the Federal Reserve policymakers are still pointing to rate lifts in the nearer future. However, they’re also concerned about a probable global economic downtime, leading financial markets to suspect that the tightening cycle mightn’t have to run much further.
Besides coronavirus, other news has been driving the stocks of Apple, Wallmart and General Motors to the lower levels.
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