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.
US equities decline on tech weakness
On Tuesday, American equities went down, with Facebook leading a dive in the tech sector as well as Nike dragging on the Dow Jones Industrial index, thus setting for a mediocre start for September due to the fact that market participants are concerned over trade clashes between countries.
The equities of Facebook went down by 2.8%, staying on track for their worst trading session since July 26, right after brokerage Moffett Nathanson had the social media giant downgraded, warning of profit surge deceleration.
As for other Internet shares such as Alphabet, Snap, and Twitter they went down 1.4%-3.8%, while the S&P tech index slumped by 0.50%.
Nike slumped by 2.7% because the company experienced a backlash after it opted for Colin Kaepernick, the first NFL sportsman who dared to kneel during the national anthem, protesting against racism, to take part in a fresh advertising campaign.
The sink in the key indexes occurred after a strong August. The Nasdaq reported its most impressive monthly revenue since January.
Consultations on an American proposal for fresh levies on China’s products are set to conclude on September 5, after which American leader can follow through on plans to slap duties on $200 billion more of China’s products, although it’s unclear how rapidly it will take place.
Negotiations between the United States and Canada to have the North American Free Trade Agreement renegotiated concluded on a gloomy note on Friday, although statesmen set plans to resume their negotiations on Wednesday.
Amidst the downbeat mood, Amazon's equities rallied by 1.9% hitting $2,050.50. The company joined Apple in the mind-blowing $1 trillion market cap.
The Dow Jones Industrial Average slumped by 0.28 percent, coming up with 25,892.71. Besides this, the S&P 500 decreased by 0.33% showing 2,891.97. Furthermore, the Nasdaq Composite dipped by 0.43% showing 8,074.54.
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 US Bureau of Economic Analysis will publish Core Personal Consumption Expenditures (PCE) on May 27 at 15:30 GMT+3.
The United States will publish the Preliminary GDP on Thursday, May 26, at 15:30 GMT+3.
The Reserve Bank of New Zealand will publish a monetary policy report and make an update on the interest rate on May 25, at 05:00 GMT+3.