The US stock market slumped sharply on Thursday after Apple’s earnings warnings turned into clear worries about a world economic slowdown. The Dow lost 2.8%, more than 650 points, while the S&P 500 index lost 2.5%. The Nasdaq Composite ended down 3%. Trading started in the red after the Dow component – Apple (NASDAQ: AAPL) warned of earnings for the last quarter – blaming particularly weak Chinese sales. Sales accelerated shortly after the bell when the Institute of Supply Management said its index of purchasing managers fell to 54.1 in December from 59.3 the previous month. In the meantime, if these incidents make you want to buy more Apple’s stock indexes among the NAS100, we suggest you visit http://www.volatility75.net/nas100brokers.html immediately to find experienced NASDAQ100 Brokers.
And sentiment further weakened when White House economic adviser Kevin Hassett told CNN that a multitude of US companies would cut guidelines like Apple until a trade deal between the US and Chinese states.
Christopher Anselmo, director of Nasdaq IR Intelligence stated that they see the market extrapolating Apple news in several sectors and equating it to a global economic slowdown. Lots of data in recent days, including US factory activity that points to a global economic slowdown. The data only provides the magnitude of the slowdown and which areas have been most affected.
Money moved out of stocks and into bonds, pushing the 10-Year Treasury yield down sharply to 2.557%.
Meanwhile, the chances of a Federal Reserve rate cut this year are soaring. Tomorrow, Fed Chair Jerome Powell is set to speak shortly after the opening bell.
And today’s selloff will bring more attention to Friday’s payroll report, if possible.
Among individual stocks, Apple was down 10%, while suppliers also fell, with Skyworks Solutions (NASDAQ: SWKS) down 10.7%, Cirrus Logic (NASDAQ: CRUS) down 8.5%, and Qorvo (NASDAQ: QRVO) down 9 %.
Other FAANG shares also closed, except Netflix (NASDAQ: NFLX), which managed to gain 1.3%.
And concerns about global technology demand are that volatile chip stocks are taking it away, with Advanced Micro Devices (NASDAQ: AMD) dropping by a sharp 9.5%, Micron (NASDAQ: MU) off 5.3%, and Nvidia (NASDAQ: NVDA) losing 6 %.
