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.
Dow goes down
On Wednesday, the Dow headed south because the key US bank had interest rates increased and also came up with a less dovish outlook on tightening than a lot of investors had hoped for.
As a matter of fact, the Dow Jones Industrial Average tumbled by 1.49%. Additionally, the S&P 500 went down by 1.62%. As for the Nasdaq Composite, it decreased by 2.17%.
A sea of red swallowed Wall Street on worries that the major US bank could overshoot on its monetary policy, even as the Fed downgraded its outlook on rate lifts next year against the backdrop of hopes for a slower tempo of surge as well as inflation.
The key American financial institution had its 2019 median estimate for interest rates reduced to 2.9% versus the previous forecast of 3.1%, dropping a hint at two rates lifts next year. It turns out to be below the three rate lifts earlier specified in the major bank’s September projections.
Some experts told that the major bank’s projections on an array of measures, including inflation, economic surge, and unemployment, didn’t appear to be as dovish as anticipated.
Selling was affected by a slump in tech, provoked by a decrease in Facebook after news that DC attorney general Karl Racine came up with a claim against the social media giant. He blamed it for sending its user's data right to Cambridge Analytica.
Energy stocks were still on the backfoot even as American crude prices managed to regain some of their losses from Tuesday despite the fact the Energy Information Administration came up with a smaller-than-anticipated draw in oil supplies.
In addition to this, transports were affected by a 12% decline in FedEx because it had its outlook on earnings downgraded, referring to a deceleration in global trade in the face of the US-China trade conflict.
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.
The Australian Bureau of Statistics will announce the updated Unemployment Rate and Employment Change data on Thursday, May 19, at 04:30 MT.
The UK Office for National Statistics will publish Consumer Price Index (CPI) data on Wednesday, May 18, at 09:00 MT.
The US Census Bureau will announce Core Retail Sales and Retail Sales on Tuesday, May 17 at 15:30 MT.