Home Markets Dow Drops 600 Points on Veteran’s Day

Dow Drops 600 Points on Veteran’s Day

205
0
SHARE

Prices in the stock market are always hit and miss. There are days where trading is good, while there are some when stock market prices instantly drop, which leads to an unforeseeable decline in stock prices and value. In recent news, Dow plunged by 600 points on Monday, after witnessing a significant reduction in Apple shares. Not only that, S&P and Nasdaq subsequently saw a considerable setback.

Many forecasters foresaw the setback, considering how Dow performance had been slowly declining before Monday’s event. The decline in Dow leads many tech investors and companies to let go of some of their stocks. However, this forecast couldn’t shield many hopeful companies from affecting losses. As a result, many big tech companies are now suffering from heavy losses, and because of the sudden withdrawal of many investors from stocks.

The Apple effect leads to many setbacks for major tech companies, especially those who are heavily dependent on manufacturing for Apple. Many forecasters are beginning to see that the future for Apple isn’t too bright and their fiscal standing for the second quarter of 2019 already looks unfavorable. As a result of Apple’s decline, the broader technology sector was pressured to invest with others and cast a cloud over two of Apple’s most significant corporate deals.

The falling stock prices can’t all be attributed solely to the Apple effect. Together with the news on the decline of Dow’s, significant indexes hit their lows during a late afternoon trading, after Bloomberg News reported of a current draft on auto-tariffs. This planted fear as well, considering how there have been rumors about the President imposing more tariffs on internationally-manufactured cars.

The President is starting to consider imposing an additional 25% charge on cars made outside the US, which will automatically bring up the prices of vehicles and set back the auto industry. The imposition of this additional charge raises some red flags with car manufacturers, as it will affect car sales and operational expenses.

Tech companies may be experiencing losses, but stocks in other industries are growing. Retail and medical services saw good trading results, which would explain why many investors are pursuing investments in that industry instead. While the tech industry has yet to reach a stable point, investors have started considering investing in stronger stock markets.