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 is braced for a low start
On Monday, Wall Street pointed to a steep dive at the open because the trade conflict between China and America took a steep turn for the worse.
After no agreement was reached in the previous week’s negotiations, American leader instructed US Trade Representative Robert Lighthizer to come up with 25% levies on literally all Chinese goods imported to America, in particular, those that weren’t actually covered by existing tariffs.
On Sunday, Trump warned China that the Asian country requires reaching a deal rather than putting much value on his probable loss of his 2020 reelection campaign.
On the contrary, Geng Shuang, China’s Foreign Ministry spokesman pledged that his country wouldn’t give up, although he didn’t provide immediate details on planned retaliatory measures.
Some experts are assured that the Chinese statesman didn’t provide any details due to the fact that the Chinese cabinet was working on a set of measures that will have precise effects, heavily hitting America, while minimizing damage to the Chinese economy.
Larry Kudlow, White House economic adviser guessed that both trading partners will suffer heavy losses in the escalating conflict. However, he hoped that the American economy would be less impacted.
As a matter of fact, the blue-chip Dow futures headed south by 1.2%, the S&P 500 futures decreased by 1.3%. As for the tech-heavy Nasdaq 100 futures inched down by about 1.7%.
Gauging the greenback’s purchasing power versus its main counterparts the USD index went down by 0.1% reaching 97.06, while the yield on the 10-year Treasury headed south 3 basis points reaching 2.43%.
Besides this, gold futures tumbled by about 0.3% ending up with $1,283.95 a troy ounce.
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.