Market Mayhem: Tech Giants Nvidia, Apple, and Tesla Take a Hit as Bitcoin Disappoints on the New York Stock Exchange
Market Turmoil: Tech Stocks Plummet Amid FOMC Rate Cut Expectations
The New York stock market is experiencing a downturn as the Federal Reserve’s Federal Open Market Committee (FOMC) is expected to implement a basic rate cut, contrary to market expectations of a more significant cut. This has led to a sharp decline in M7 technology stocks, including Nvidia, Apple, and Tesla.
Apple’s iPhone 16 Pre-Orders Disappoint
According to the New York Stock Exchange, pre-orders for Apple’s latest smartphone, the iPhone 16, have been sluggish. Apple’s stock price fell 3% as a result. Kuo Ming-chi, a renowned Apple expert analyst, reported that pre-order sales of the iPhone 16 through the first weekend were approximately 37 million units, a 13% decrease compared to the same period last year when the iPhone 15 was released.
Apple Intelligence Delay Contributes to Lower Demand
Kuo Ming-chi attributed the lower demand for the iPhone 16 Pro series to the delayed release of Apple Intelligence, a major selling point. Apple Intelligence, the company’s artificial intelligence (AI) system, was expected to be installed in Apple devices, including the iPhone, but its functions will be included in the new iPhone operating system (iOS 18) upgrade version next month. It is expected to take several months for all AI functions to be integrated into the iPhone.
Nasdaq Falls Amid FOMC Meeting and Trump Assassination Attempt
The Nasdaq is falling ahead of the September meeting of the Federal Open Market Committee (FOMC), while the New York Stock Exchange is in turmoil due to the second assassination attempt on former President Donald Trump, the Republican presidential candidate. Market participants are waiting for the opening of the September FOMC meeting, scheduled for a day later.
Federal Reserve Expected to End Tightening Monetary Policy
The Federal Reserve (Fed) is expected to end its tightening monetary policy, maintained since March 2022, at the September FOMC meeting on the 17th and 18th. The key focus is on the extent of the rate cut, with some analysts speculating that the plan for future rate cuts and explanations are more important. According to the FedWatch tool of the Chicago Derivatives Exchange Group (CME Group), the probability of a 25bp rate cut is reflected at 41%, while a 50bp cut is reflected at 59%.
Tech Stocks Decline, Intel Shares Jump
Shares of semiconductor company Intel jumped more than 3% after the company announced it could receive up to $3.5 billion in federal grants to produce military chips for the U.S. Department of Defense. In contrast, all stocks in the “Magnificent Seven,” a group of large tech stocks, are falling, including Nvidia and Tesla, which are also showing declines in the 2% range.
Bitcoin Price Falls Amid Trump Assassination Attempt
The price of Bitcoin is falling sharply following the second assassination attempt on former US President Donald Trump, the Republican presidential candidate. The stock price of Trump Media, a company in which he is a major shareholder, has soared after former US President Trump announced that he would not sell his stock.
Key Economic Indicators and Schedule
September 16th: September Empire State Manufacturing Index
September 17th: US September FOMC Day 1, August Retail Sales, August Industrial Production and Equipment Operation Rate, July Corporate Inventory, August Manufacturing Production, September National Association of Home Builders (NAHB) Home Price Index
September 18th: US September FOMC Day 2, Decision on base interest rate, release of economic outlook report, Fed Chairman Jerome Powell Press Conference, August New Housing Starts and Housing Start Permits
September 19th: Day 1 of the Bank of Japan (BOJ) Monetary Policy Decision Meeting, Weekly new unemployment insurance claimants, September Philadelphia Fed Manufacturing Index, August Existing Home Sales, August Leading Economic Index, FedEx and others announce earnings
* September 20th: BOJ Monetary Policy Decision Meeting Day 2