Wall Street saw a downward trend in stocks on Tuesday as tech giant Apple held its highly anticipated fall event, and investors anxiously awaited the release of key inflation data scheduled for Wednesday. The Nasdaq Composite (^IXIC), dominated by tech companies, witnessed a significant decline of more than 1%, primarily due to the plummeting performance of Oracle stock (ORCL) following reports of slowing cloud sales growth. The broader market indices also faced challenges, with the S&P 500 (^GSPC) experiencing a 0.6% drop, and the Dow Jones Industrial Average (^DJI) managing to recover from earlier losses, ultimately closing relatively flat.
Tech stocks took center stage on Wall Street throughout the day, with Apple (AAPL) stealing the spotlight by announcing the launch of the highly anticipated iPhone 15 at its annual event. However, Apple’s stock price reflected a 1.7% decrease during the trading session, possibly due to high expectations and concerns about supply chain issues. Simultaneously, the market buzzed with anticipation for the upcoming Arm IPO, with reports suggesting an oversubscription of up to 10 times. The chip designer decided to close its order book early on Tuesday afternoon, creating a frenzy of interest among investors.
Adding to the complexity of the market landscape were surging oil prices, which raised concerns about the Federal Reserve’s efforts to combat inflation. Both WTI crude (CL=F) and Brent (BZ=F) futures soared, reaching near nine-month highs early Tuesday. This surge was fueled by OPEC data indicating a looming supply shortfall of over 3 million barrels a day in the next quarter, adding pressure to the global energy markets.
Investor attention is now firmly fixed on Wednesday’s crucial US inflation data release, as they await signals regarding a potential slowdown in consumer spending. Thursday will provide further insight into the resilience of households, with the release of the August retail sales report.
This week’s barrage of economic data holds immense significance, as it may shape the Federal Reserve’s decisions at its upcoming September meeting. Investors are closely evaluating the possibility of additional interest rate hikes and whether they have already been factored into the stock market’s performance. The outcome of Wednesday’s inflation data and Thursday’s retail sales report will likely influence Wall Street’s trajectory in the coming days, as market participants eagerly await the Fed’s stance on monetary policy.
Source: Yahoo Finance
