In a tumultuous session on Thursday, the Nasdaq stock exchange experienced a significant decline, primarily driven by the sharp downturn in tech titan Apple. The company’s shares took a hit following revelations that China has barred its government officials from utilizing iPhones, with intentions to extend the prohibition to state-owned enterprises. Meanwhile, the Dow Jones Industrial Average bucked the trend, recording a modest uptick of 0.2%, in stark contrast to the S&P 500’s 0.3% dip, and the tech-focused Nasdaq Composite’s substantial 1% plunge, and the individual stock value of Apple declined by 3%.
Furthermore, recent reports indicated a drop in unemployment figures last week, reaching lows not seen since February. This development has prompted heightened deliberations within the Federal Reserve regarding the possibility of an extended period of heightened interest rates. Concurrently, escalating yields in Treasury bonds have exerted pressure on tech stocks.
The oil market, which had appeared to be at odds with the Federal Reserve’s efforts to rein in inflation, retreated after China’s latest trade data failed to assuage concerns of a sluggish economic trajectory. The dwindling global trade activity poses a notable risk to the United States economy, raising questions about whether the Federal Reserve will opt to maintain its elevated interest rates during its upcoming September meeting.
In totality, the Nasdaq exchange finds itself contending with an array of internal and external influences. The combined impact of deliberations within the Federal Reserve, the state of the US economy, and Apple’s recent tribulations has prompted investors to exercise caution when considering investments in the stock market.
Source: Yahoo Finance
