Dow Jones slides after discouraging Apple news
Wall Street is having another bearish day after the tech company's stock falls.
The Apple effect
Chief executive officer (CEO), Tim Cook, noted in an interview that sluggish sales in China hurt iPhone purchase amounts overall. After Cook predicted lower-than-expected numbers for Apple’s Q1 report, the company’s stock and Wall Street have both plummeted. Investors worry that the economic slowdown in China and fewer Apple device sales signal the start of a bull market in the US markets. Financial experts like, Jeff Kilberg, chief executive officer (CEO), of KKM Financial noted that Apple’s troubles are part of a possible impending global economic downturn.
‘This piles on to existing anxiety of a slowdown in global growth. Apple can be used as a proxy to China's growth,’ said Kilberg.
How China’s economic woes affect the US
The diminished expectations in Apple’s guidance has also led investors to have doubts about China's economy, the second-largest in the world. Accendo Markets analyst, Mike van Dulken, wrote that the news about Apple compounds anxiety about the global markets.
‘This adds fuel to the fire of concerns about slowing global growth and/or a trade war’, noted van Dulken.
Global and local conflicts drag down markets
In addition to the reduction in Apple device sales, there are global issues like Brexit and the potential US-China trade war also unsettling shareholders. Unresolved domestic issues like the US government shutdown adds to the uncertainty about the US markets. The latest slide is driving investors to fear the worst isn’t over for Wall Street at the start of 2019.
This information has been prepared by IG, a trading name of IG Limited. In addition to the disclaimer below, the material on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients.
CFDs are a leveraged products. CFD trading may not be suitable for everyone and can result in losses that exceed your initial deposit, so please ensure that you fully understand the risks involved.
See an opportunity to trade?
Go long or short on more than 16,000 markets with IG.
Trade CFDs on our award-winning platform, with low spreads on indices, shares, commodities and more.
Live prices on most popular markets