Apple shares fell after the unveiling ceremony of their new iPhone X on Wednesday, dragging down with it the three major indexes in tech stocks, while the S&P 500 rallied to intraday record highs.
Tech Stocks Fall
Shares in Apple fell 1.2 percent following the announcement of a hefty price tag of $1000 together with the disappointing long expected date for consumers to purchase the iPhone X of November 3. Tech stocks of Apple suppliers also dipped with Dialog and AMS falling between 1-3 percent and a 6 percent drop for British semi-conductor IQE Plc.
Test the Theory of Weak Inflation
Global markets strategist with JP Morgan Asset Management in London, Mike Bell said that it is going to be interesting to see what the demand for the iPhone is, with a price tag of $1000. It will show what confidence there is in US companies and consumers pricing power testing the theory of weak inflation.
The pan-European STOXX 600 fell 0.1 percent
The S&P energy index gained 0.9 percent after data released by the International Energy Agency confirmed that global surplus of crude was declining pushing up oil prices.
The US dollar gained and was at a 12 day high at 110 yen.
The pound sterling also gained to a one year high of $1.33.
According to strategist Esther Reichelt at Commerzbank in Frankfurt, US dollar investors are waiting for the data on inflation, which is due tomorrow and the Feds comments next week – it’s a ‘wait and see’.
On the NYSE advancing issues outnumbered decliners by 1,480 to 1,288.
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