Stocks in the US market have been going through a rough patch, as they lowered this Tuesday. The timing is unfortunate for Apple, which started off a recent event to show off new products. The main culprit of this drop was likely inflation data. Apple lowered considerably, going down by 1.7% in a single day. Such movements are true for the tech trade in general.
The NASDAQ lowered by 1.0%, an index that represents the tech sector heavily. Most notably, Oracle’s stock fell with its recent sales data, showing slow growth. In the meantime, the S&P 500 Jones lowered by 0.6%, with the Dow Jones moving sideways by the end of the day. The fact that these two indices performed better than the NASDAQ indicates that it was tech specifically that suffered. We can then imply that there has been an effect on tech sales.
Oil Price Surge, Inflation Data, and Tech Trade
Inflation may be due to a number of factors. The main one we can think of would be oil prices having risen. This raised worries among investors on how the Fed would react, with concerns that there was not much they could do. Futures for both crude and Brent have not been so high for nine months. The reason is a lack of supply of oil in markets. In fact, the markets will be short as much as 3 million barrels every day.
With the release of inflation data this Wednesday, we have yet to see the reaction of investors. The data coming from the US could have a significant impact, especially on those with a tech background. Investors are mainly expecting spending to lower. Further data will show how households withstand economic troubles.
So, investors are looking into the future with worries as to how interest rates will change from the Fed. They expected interest hikes originally, so many hope the Fed has considered how this would affect markets, including the tech trade.