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.
Wall Street goes down on growth fears
On Thursday, technology equities led a dive on Wall Street, with the S&P 500 keeping to 15-month minimums and the Nasdaq heading for bear market territory, right after the key US financial institution confounded expectations for a toned-down approach to its interest-rate hike plan.
Contributing to the gloom were several downbeat earnings reports and also the American Congress trying to agree on a funding bill before a Friday midnight deadline for the purpose of preventing a partial shutdown of the US cabinet.
The Nasdaq tumbled by 2.3% demonstrating its session minimum and pushing the tech-heavy index over 20% below its August 29 maximum. Market experts are assured that if it manages to conclude at those levels, bear territory for the index will be confirmed.
The key US bank’s move on Wednesday to mostly keep to its plan for more rate lifts over the next two years as well as Jerome Powell's initiative to keep the Fed’s balance sheet-reduction plan in the auto mode spooked traders already concerned about decelerating economic surge.
It provoked a retreat in surge sectors, including healthcare and technology because market participants looked for comfort in the relative safety of defensive sectors, including real estate and utilities.
The technology sector that had led most of the market's long lasting bull marathon also found itself in bear market territory with its session minimum. Last the index declined by 2.01%, thus becoming the top drag on the market.
As for consumer equities, they also tumbled on fears of higher borrowing costs contributing to signs of decelerating consumer spending in the run-up to Christmas. As a matter of fact, the consumer discretionary index went down by 2.36%, while the traditionally defensive staples sector headed south by 1.46%.
ET the Dow Jones Industrial Average lost 1.77% reaching 22,911.29. Moreover, the S&P 500 tumbled by 1.46%.
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.