Major Stock Markets Drop Amidst iPhone Sales Concerns
Major stock markets, such as the Dow Jones Industrial Average, experienced substantial declines last Tuesday. Both the Dow Jones and the S&P 500 fell by 1% due to concerns over iPhone sales and economic assessments. The most significant drop was witnessed in the technology sector with a 2.5% decrease.
The Nasdaq and small-cap Russell 2000 dropped by approximately 1.7% and 1% respectively. Furthermore, Wednesday kept investors cautious ahead of the Federal Reserve’s policy statement. Adding to the market woes, Apple Inc’s stocks also declined, impacting the tech sector severely.
Despite the mixed trends in international markets, Asian markets saw a decline due to increased trade tensions. European markets remained balanced as many companies reported strong quarterly performances. Investors now look forward to the economic data and earnings reports for further market directions.
The February S&P Global Purchasing Managers’ Index reported a rate of 52.5, outperforming the expected 51.4. However, manufacturers’ orders decreased by 3.6% in January, casting a shadow over this victory. Additionally, the February Institute of Supply Management survey fell slightly short of its forecast at 52.6, compared to the expected 53.
Conversely, a decline was noted in the Employment Index to 48.5, suggesting layoffs or hiring freezes. Despite this, many sectors showed promising signs for gradual recovery, backed by indices indicating steady growth.
Investors now await Federal Reserve Chairman Jerome Powell’s testimonies before Congress, focusing on his insights into future monetary policies, and views on economic recovery amid the ongoing pandemic.
Apple’s stocks suffered a 2.8% fall following reports of a 24% predicted drop in iPhone sales in China in 2024. Further complications arise as Berkshire Hathaway, a significant shareholder, recently sold some Apple shares, intensifying competition in the tech space.
Despite the stock market volatility, certain stocks displayed resilience. Nvidia and Super Micro Computer recovered partially, while AeroVironment surged with a 12% increase after surpassing analysts’ estimates.
However, Tesla’s stock fell by about 4%, and this trend doesn’t show signs of improvement soon. This slump suggests a persistent bearish phase in most sectors that has left investors wary and cautious.
