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STOCK MARKET

Stock Futures Point to Negative Start as Fed’s Rate Hikes Weigh on Wall Street, Apple Stock Tumbles

Stock futures indicated a negative start for Wall Street on Friday as concerns over potential interest rate hikes by the Federal Reserve weighed on investor sentiment. The Dow Jones Industrial Average futures dipped 0.2%, while the S&P 500 and Nasdaq 100 futures saw slight gains of 0.2% and 0.3% respectively.

DocuSign Shares Rise Following Strong Q2 Results, RH Stock Drops on Weak Q3 Outlook

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In premarket trading, shares of leading e-signature company DocuSign rose 3% following better-than-expected second-quarter results and positive third-quarter guidance. The company’s robust performance has garnered investor confidence amidst the uncertain market conditions.

On the other hand, home furnishings company RH saw its stock drop 8% after reporting a weak third-quarter revenue outlook. The disappointing forecast has raised concerns among investors about the company’s ability to meet market expectations.

Apple Stock Tumbles as China Concerns Mount

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Apple Stock 5-Day Chart

Apple stock has experienced a significant decline in market capitalization over the past two days, losing $191 billion. This decline is attributed to fears of China’s crackdown on the company. The prospect of China souring on Apple has caused concern among investors, leading to a 3.6% slide in Apple shares.

Beijing’s restrictions on iPhone use by government staff have raised concerns among U.S. lawmakers and fueled fears within the technology sector.

Reports suggesting a ban on iPhone use by Chinese government employees have further contributed to the decline in Apple shares, with a 3% fall on Thursday following a 4% decline on Wednesday. This ongoing decline in Apple stock reflects worries about the reported ban on government iPhones in China. Sources: Yahoo Finance, Bloomberg, Reuters, CNBC, NBC News, MarketWatch, Business Insider, Nikkei Asia.

Weekly Performance: Dow and S&P 500 Decline, Nasdaq Experiences Drop

For the week, the Dow and S&P 500 were down nearly 1% and 1.4% respectively, while the Nasdaq experienced a 2% decline. The overall downward trend reflects the cautious sentiment prevailing in the market amid uncertainties surrounding the Federal Reserve’s monetary policy decisions.

Investor Concerns Reinforced by Lower-Than-Expected Jobless Claims

Investor concerns about further interest rate hikes were reinforced by lower-than-expected initial jobless claims. The CME Fed Watch tool indicates that there is a 50% chance of a rate increase in November. This uncertainty has added to the caution among investors, prompting them to reevaluate their strategies.

Mixed Performance in Previous Session

While the tech-heavy Nasdaq Composite and the S&P 500 both saw declines in the previous session, with the Nasdaq experiencing its fourth straight losing day, the Dow managed to rise by 0.2%. This divergence in performance highlights the mixed sentiment and the market’s sensitivity to the Federal Reserve’s actions.

European Markets Rise on Friday, Aiming to Break a Seven-day Losing Streak

The pan-European Stoxx 600 index starts the day with a 0.3% increase, as most sectors show slight gains. Retail stocks lead the way with a 0.9% rise, followed by a 0.6% uptick in tech stocks.

Analyst Opinion

Despite some challenging data in August and the potential for a similar situation in September, experts believe that the prospects for the market remain positive. While concerns about interest rates and economic indicators persist, a recession is not anticipated in the near future. Investors should closely monitor developments by following the economic calendar and adjust their portfolios accordingly.

Sources

Nasdaq

DowJones

S&P 500

Disclaimer

The information provided in this article is based on publicly available sources and should not be considered financial advice. It is always recommended to conduct thorough research and consult with a professional before making any investment decisions.

Author

  • Zahari Rangelov

    Zahari Rangelov is an experienced professional Forex trader and trading mentor with knowledge in technical and fundamental analysis, medium-term trading strategies, risk management and diversification. He has been involved in the foreign exchange markets since 2005, when he opened his first live account in 2007. Currently, Zahari is the Head of Sales & Business Development at TraderFactor's London branch. He provides lectures during webinars and seminars for traders on topics such as; Psychology of market participants’ moods, Investments & speculation with different financial instruments and Automated Expert Advisors & signal providers. Zahari’s success lies in his application of research-backed techniques and practices that have helped him become a successful forex trader, a mentor to many traders, and a respected authority figure within the trading community.