Virgin Galactic’s Branson flew to space, but the stock of Virgin Galactic (SPCE) dropped. Why?
American futures inch down
On Tuesday, American futures declined by 1% because a technology rout in the previous trading marathon provoked by fears over iPhone sales affected investors' appetite for high-surge companies.
The equities of Apple Inc went down by 1.4%, making their way for their seventh dive for the last nine trading sessions, losing nearly 20% from a maximum earlier in 2018, which valued it at over $1 trillion.
Indications of decelerating demand for the company's flagship iPhones definitely have wide-ranging implications for Internet and tech firms at a time when investors are worrying over soaring corporate earnings surge, soaring borrowing costs, to say nothing of a global economy suppressed by trade clashes.
As for the FANG group of high-growth technology-focused equities, they kept losing steam.
In addition to this, Amazon, Facebook Inc, and Netflix Inc all dived 1.5%-2.01%.
Besides this, chipmakers Advanced Micro Devices Inc as well as Micron Technology Inc both declined over 3%. Nvidia Corp and Intel Corp dipped by respectively 2.3% and 0.5%.
With all three key indices staying below their 100- as well as 200-days moving averages and also all the FAANG stocks in bear territory, a solid shift in fundamentals is required to regain confidence.
The Dow e-minis 1YMc1 headed south by 0.5%. Moreover, the S&P 500 e-minis slumped by 0.55%, while Nasdaq 100 e-minis decreased by 0.95%.
Remarks by New York Federal Reserve President John Williams that the Federal Reserve is currently pushing ahead with gradual rate-lift plans in December as it’s trying to stick with a more normal monetary policy.
In addition to this, Target Corp sank by 5.9% having reported lower than anticipated third-quarter revenue. Furthermore, the equities of home improvement chain Lowe's slipped by 5% after it uncovered more restructuring plans against the backdrop of worse than anticipated comparable sales outcomes.
The overall market sentiment is risk-on. The S&P 500 index (US 500) is getting close to the all-time high. Oil is recovering quickly from its recent losses.
What will happen? The FOMC statement will be published at 21:00 MT (GMT+3) on Wednesday, July 28…
PMI reports from the EU, the UK, and the USA will be released during the day!