Stock Market: What’s happening with Apple?
The index futures yesterday were up throughout the day and started the day higher. However, a number of geopolitical conflict-related factors caused US markets to open at high levels once more. Natural gas prices shot up 19% in no time as a result of the Nord Stream breach, adding to the misery of Europeans already suffering from inflation and energy shortages. It’s already winter outside; it’s not only a winter for risk markets and apple. The euro has dropped to its lowest point since June 2002 as the dollar indexes keep rising, and it is unlikely that this trend will reverse itself before the eurozone rises interest rates in October. It should be emphasized that the Federal Reserve has been very busy lately.
However, the statement at one in the morning this morning showed the risk of excessive tightening while also demonstrating that the existing strategy of rising interest rates still needs to stay up with inflation. Several members of the FOMC Committee talked in a highly hawkish manner. Therefore, not even the more dovish views offered much solace. The two oils that were anticipated to decline have also recovered. This is partly because it is likely that Russia would decide to reduce output in response to three demands from OPEC+. Even while the reduction is slight, it has stopped the downward trend, and the United States has also stopped producing some oil and gas in the Gulf of Mexico, which has caused prices to rise even further.
Apple’s production reduction result in a decline in risk markets
The end of September signifies the end of the third quarter. Today GDPNow releases its most recent estimate of third-quarter gross domestic product in the United States. This estimate is interesting because, although the number is still 3%, it has been rounded off. The data shows a slight upward trend in G.D.P. For the Fed, slowing strong growth without causing a broad recession, that might be the optimum result.
I was reminded of a White House dispatch from today announcing that the U.S. Congress will pass an interim government funding bill this Friday, but I’m not sure how that will help, and I’m not sure if it won’t increase the country’s deficit given that senior Moody’s Analytics staffers have stated publicly that Biden’s budget deficit increased above all else during his presidency. US Treasury bonds are an additional more delicate subject. The US Treasury Department auctioned $44 billion in five-year bonds this morning. At a bid rate of 4.228%, or 1% every month. Even still, there are indications that significant sums of money are continuing to flow out of U.S. debt. Showing that investors are still pessimistic about the American economy and that markets will struggle to recover.
In conclusion, despite the dramatic decline in US stocks early this morning, the Nasdaq futures snapped a five-day losing run and increased marginally just before the market closed. However, because of the immediate profit made by Apple’s production reduction, after-hours Nasdaq futures prices dropped significantly at 9 a.m. BTC and ETH were once more pushed toward the relative bottom by this.