U.S. Stocks Slump Owing to Dropping Apple Inc. Earnings
U.S, stocks witnessed downfall owing to the dropping stocks of two of the giant in the industry, viz, Apple and Boeing.
As per the recent statistics released by Federal Reserve, stocks dropped at the end of trading session on Wednesday primarily because of the disappointing earnings (plunging 6.6% since last sales’ decline in 2003) of the largest company in World, Apple Inc. Since the year 2003, it is for the first time that Apple’s earning slid down and that too by 5%. As per the sources, this downturn is majorly due to the slowest ever growth in shipment of iPhone from the tech giant.
According to official figures, Apple Inc. alongside Boeing Co. contributed for more than half of the 223-point slide in the Dow Jones Industrial Average. In a conference held earlier, Tim Cook had cautioned the World of challenging economic conditions ahead in markets of countries like Brazil, Japan and China, but these estimates were taken lightly.
How Apple’s Earnings are Affecting U.S. Stocks?
These falling figures from Apple further pulled down the tech sector while clearly affecting the top tech companies including Microsoft, Netflix, Oracle and Intel to name some. Some of the top suppliers in the smartphone segment have also recoiled such as Dialog Semiconductor Plc, ARM Holdings Plc and AMS AG.
Wavering oil prices and not so consistent housing market are the other factors that have contributed to slump in U.S. stocks.
The Apple stocks have been down by 20% in the past three or so months. It is being predicted that the management will now focus on bringing in innovative strategies to cope up with the downfall and bounce back strongly. If it happens or not; let’s leave it on the time to come!