Tech Stocks Take a Tumble: Nasdaq Hits Two-Month Low Amid iPhone Supply Shortage and Energy Stock Decline
On Wednesday, tech stocks experienced a decline, causing the Nasdaq to reach its lowest point since October. The Nasdaq fell 1.1%, the S&P 500 decreased by 0.8%, and the Dow Jones Industrial Average dropped 0.7% or 216 points. Stock markets commonly see daily fluctuations.
There can be various reasons for changes in stock prices, including economic and company news, alongside global events. Investors must consider their investment goals and risk tolerance before making any investment decisions, diversify their portfolio and maintain a long-term perspective when investing in the stock market.
iPhone Supply Shortage
Apple’s stock price fell more than 2% on a particular day (which the article does not specify) because of concerns about a shortage of iPhone supplies. Labor shortages caused this supply shortage in China. In addition, TrendForce, a research facility, has revised its estimate for iPhone orders in 2022 and 2023 downward, from 52 million units to 47 million units.
In the broader market, energy stocks may also have contributed to the decline, as conflicting forces dragged lower oil prices. On the one hand, increasing COVID-19 cases may reduce energy demand by restricting economic activity.
On the other hand, Beijing’s recent decision to relax pandemic restrictions may increase energy demand. As a result, several companies, including APA (NASDAQ: APA), CTRA (NYSE: CTRA), and NYSE: EQT, experienced significant declines in their stock prices on a particular day (which the article does not specify).
In addition, the industrial sector may have felt the impact of the weakness in airline stocks caused by flight cancellations due to a winter storm in the United States. As a result, Southwest Airlines, American Airlines, and Delta Air Lines all saw their stock prices fall.
Tesla’s Stock Price Increases as S&P 500 Set to Lose Big
Tesla (NASDAQ: TSLA) saw an increase in its stock price. However, financial services firm Baird has lowered its target for its stock due to possible weakening demand for electric vehicles.
The S & P 500 is about to experience its largest yearly loss since the financial crisis of 2008. A recession is a period of economic turmoil characterized by declining gross domestic product (GDP), high unemployment, and low business and consumer confidence.
Fears of a recession may continue to hit the market in 2023. However, equity markets, which are financial markets that consist of the buying and selling shares of ownership in publicly traded companies, may rebound as 2023 ends as investors wait for an economic recovery.
It is crucial for investors to consider their investment goals before making any investment decisions and to be aware of the risks and uncertainties that can affect the market.