Global Tech Stocks Tank Following Apple Decline
Apple shares plummeted nearly 8 percent in late trading on Wednesday after the company cut its outlook, and as a direct result, other tech shares sank, setting of another wave of concern among investors. As a result of Apple’s decline, tech ETFs and mutual funds fell swiftly, and futures point to a lower open on Wall Street on Thursday. Asian shares were broadly lower on Thursday, following a day of losses on Wednesday, with the ASX 200 the only major index to head higher. Australia’s benchmark index was up 1.36 percent as of 1:55 p.m. HK/SNI
China’s benchmark indexes, the Shanghai Composite and the Shenzhen Composite, were down 0.15 percent and 0.01 percent respectively, while Hong Kong’s Hang Seng Index was 0.68 percent lower.
Despite Apple’s most recent struggle, some analysts remain bullish on the stock, predicting that Apple will be one of the best FAANG performers this year. Still, it can take time, anywhere from a quarter to a full year, to really see a rebound.
Forex Flash Crash
Apple’s announcement on Wednesday set off a ‘flash crash’ in the currency markets, with the dollar falling to 104.96 yen, its lowest point since March 2018. The greenback later recouped some of its losses. The flash crash was largely seen in currencies that trade against the yen, and the currency breached key technical support levels as traders flocked to the safe-haven currency. Adding to the steep movements was a lack of liquidity in the markets as Japan is still on New Year’s holiday.
The dollar was lower against most of its trading partners on Thursday, with the dollar index falling 0.29 percent by the early afternoon to trade at 96.54 .DXY. The euro gained 0.14 percent against the dollar, to trade at $1.1357, while the British pound eased 0.51 percent to trade at $1.2543.