Apple Drops By 2%, Stocks Drop And Rates Increase
Recent reports have revealed that the stock market has suffered a blow, while major companies such as Apple have reported 2 percent decline in their shares. TMSC, Taiwan Semiconductor Manufacturer, said in an announcement, that it expects the 2nd quarter revenue to be between a range of $7.8 billion and $7.9 billion, which is quite below expectations.
On the other hand, major tech giant Apple reported a 2 percent drop in its shares, whereas Nvidia, Advanced Micro Devices and Micron reported a 1 percent decline in its shares. Wall Street also remained cautious about the increasing interest rates as the decade long, 10 year Treasury note, fell below 2.9 percent.
US stocks, on the whole, remained lower on Thursday after it was revealed that a major Asian chip manufacturer delivered quite a disappointing forecast and it overall had a negative impact on the technology sector as well. Investors also remained quite skeptical about the increasing interest rates.
In the stock markets, Dow Jones industrial average dropped by 26 points, whereas Apple remained the worst performing stock. Moreover, the S&P 500 dropped by 0.3 percent whereas the technology dropped by 0.7 percent. In addition, the Nasdaq composite also dropped by 0.4 percent.
One of the major shocks to the tech stocks came after TMSC announced that it is expecting its 2nd quarter revenue to be between $7.8 billion to $7.9 billion, which was way below the expected earnings of $8.8 billion. The news came as a shock and had a major toll on the stocks. Moreover, in the tech domain, Apple, Nvidia, Micron and others reported 2 percent and 1 percent declines.
Jeff Bezon CEO
In corporate news, Jeff Bezon, CEO of tech giant Amazon announced that it has 100 million Prime members. The news was seen as a sign of positivity and sent the stocks to rise by 2 percent. In other news, the weekly jobless claims equaled to 232,000, which was quite more than the expectations. Contrarily, the Philadelphia Fed index hit a mark of 23.2 in the month of April, above the expectations of 20.