Tech Stocks Rotation Shakes Global Markets as Apple Hikes Prices
The global equity markets shook over the mega-tech stocks rotation following a significant price hike by Apple Inc., which caused its stock to drop by 6.2%.
The move raised concerns about inflation and earnings forecasts within the technology sector, particularly affecting companies reliant on memory chips for their products and AI infrastructure.
Apple is increasing the prices of MacBooks and iPads worldwide due to rising costs of memory and storage chips. The iPhone maker has raised prices on some laptops and tablets by almost 20%, saying the electronics industry is facing an “unprecedented challenge” due to an “extraordinary surge” in demand for chips that power AI data centres.
In the United States, major indices had mixed results, with the S&P 500 remaining flat, the NASDAQ decreasing by 0.46%, and the Dow Jones increasing by 0.14%.
While US technology stocks struggled, European markets saw gains: the Euro Stoxx 50 rose 0.85% and the FTSE 100 rose 0.65%, driven by a recovery in the banking and financial sectors.
In Asia, however, caution prevailed, with the Hang Seng Index dropping 1.87% and the Nikkei 225 declining 4.23% amid valuation concerns in the tech sector, although the ASX 200 managed a slight 0.13% increase, supported by resource stocks.
The Johannesburg Stock Exchange (JSE) was expected to open weakly, influenced by pressure on global equity futures and declines in Asian markets, particularly in technology. Notably, Tencent’s 1.38% decline indicated potential difficulties for Naspers and Prosus at the start of trading.
On a more positive note, the ASX 300 Metals and Mining Index rose by 0.44%, providing stability for local miners, despite potential challenges from falling prices in platinum, palladium, and gold.
The local bourse had a strong performance the previous Thursday, spurred by a higher-than-expected Producer Price Index and a rebound in Platinum Group Metals.
Resources led the market gains, jumping 2.21%, with notable increases in individual stocks like Implats, Northam, and Valterra. The All-Share Index concluded the day up 0.98%, reaching 110,901 points, while the Top 40 Index climbed 1.07% to 102,624 points. Global Markets Mixed on Renewed US-Iran Threat
