In a turbulent trading session on Thursday, the Nasdaq stock exchange experienced a significant downturn, primarily driven by the decline of tech behemoth Apple. The company’s shares took a hit following reports of China’s decision to prohibit its government officials from utilizing iPhones. Furthermore, there are indications that this ban may extend to state-owned enterprises.
While the Dow Jones Industrial Average managed to eke out a modest gain of 0.2%, the S&P 500 saw a dip of 0.3%. The Nasdaq Composite, which heavily relies on tech stocks, witnessed a sharp decline of 1% while the individual stock value of Apple plummeted by 3%.
Adding to the economic landscape, reports surfaced last week showcasing a decline in unemployment numbers, reaching levels not seen since February. This development has spurred the Federal Reserve to contemplate a prolonged period of increased interest rates. In tandem, the escalating yields in Treasury bonds have exacerbated the strain on tech stocks.
The price of oil, previously seen as a counterforce to the Federal Reserve’s efforts to rein in inflation, took a step back in response to China’s latest trade data, which failed to assuage concerns about economic sluggishness. The diminishing volume of global trade presents a notable threat to the United States economy, prompting speculation about the Federal Reserve’s stance on maintaining elevated interest rates at its upcoming September meeting.
The Nasdaq exchange finds itself grappling with a confluence of internal and external factors. The struggles of Apple, coupled with the Federal Reserve’s policies and the state of the U.S. economy, have prompted investors to exercise caution before committing funds to the stock market. The question now lingers as to how these elements will shape the trajectory of the exchange in the coming weeks.
Source: Yahoo Finance