Wednesday’s stock market was in disarray following traders’ difficulty in finding their footings following the slump in the S&P 500 as it battled a bearish low in the previous session.
Europe Stocks in Fresh Turmoil
Dow Jones Industrial Average futures fell 57 points — roughly 0.2%. S&P 500 futures tumbled 0.4%, while Nasdaq 100 futures dropped 0.9%. Per Bloomberg, Apple’s shares were significantly down 4% in early trading.
The report cited sources familiar with the development as saying that the tech giant is considering abandoning plans to increase the latest iPhone production due to lower-than-expected demand.
Stock futures recovered some earlier losses after the Bank of England announced that it would temporarily acquire long-dated UK government bonds to stabilize the declining British pound.
Moreover, Pound Sterling momentarily rose on the news before falling 0.5% against the United States dollar to $1.0647.
Meanwhile, the 10-year US Treasury yield lost some of its early gains following the announcement and was the last trading at around 3.93%. Earlier in the day, the benchmark rate surpassed 4% for the first time in more than a decade.
Wall Street is starting to come off a mixed session where the S&P 500 set a new bear market low of 3,623.29 and lost for the sixth day. The Nasdaq Composite managed to score a modest gain during the same period.
Numerous market metrics indicate that equities may have been oversold. However, some Wall Street insiders are concerned that investors cannot price early, coupled with the Federal Reserve’s rate hikes.
As a result, the S&P 500 breaking below its recent low signifies that the fall for stocks is far from over.
Many believe stocks are not yet out of the woods, given the recessionary outcomes. The market needs to get more involved in valuation for equities and not leave anything to the dictates of speculations, according to Anastasia Amoroso, the lead investment strategist at iCapital.
Apple Report Dwindling Shares
Following a report that Apple is ditching plans to continue the production of the new iPhone series, stocks of the tech giant took a great hit. As a result, shares of the company were down by 4% in the premarket session on Wednesday.
Apple recently planned to increase production of the iPhone 14 product category by up to 6 million units in Q2 this year before notifying suppliers of its decision to halt. Semiconductor providers like Qualcomm and Skyworks saw their shares fall 2.9% and 2.5% in the premarket following the report.
Meanwhile, Apple’s decision, which has a disproportionate weighting in the S&P 500 due to its $2.4 trillion market cap, will most likely make it challenging for markets to recover.
The firm has been one of the best-performing stocks before the present market turbulence. It leads the primary performance index of the equity market due to its outstanding products and massive customer base.