The Dow Jones industrial average was down 122 points, while the Standard & Poor’s 500 Index fell 0.5%. While the Nasdaq Composite Composite Index fell more than 0.7%.
Apple shares fell more than 2% after an analyst at Rosenblatt Securities lowered his rating of the stock to “sale” from”neutral”. The analyst declared that Apple’s stocks will “face fundamental deterioration over the next 6 to 12 months” as the company’s iPhone sales declined and the growth of other products slowed.
Other technology stocks such as NetApp and Juniper Networks also fell. Micron technology, Applied Materials and Lam research also declined by more than 1%.
Wall Street also looks forward to Federal Reserve Chairman Jerome Powell’s testimony on Wednesday. Powell’s testimony comes after a stronger-than-expected jobs report caused market participants to question whether the Fed would cut interest rates later this month.
Employment data on Friday surprised the market, which reduces the likelihood that the Fed will act, as they will likely have to gather more evidence before deciding on the next step in monetary policy.
The Federal Reserve opened the door to lower interest rates last month after saying it would “act as appropriate” to maintain the current economic expansion of the United States, which seems to be the longest ever.
” I think that this will be one of the most important weeks of Chairman Powell’s 2019 career. I think the market has expectations of a quarter point at minimum rate cut at the end of July, yet the Fed really hasn’t concluded that that is going to occur yet,” said chief market strategists. “This is the week that either Chairman Powell needs to guide the market into what they believe they are going to do that could be different or he needs to concur with the market,”.
Major indexes saw some strong gains last week, recording new all-time highs.
In another context, gold prices could continue to rise even after hitting their highest levels in several years last week. Prices are set to “reach $2000 by the end of the year”, predicted financial strategists.
Spot gold prices reached $1422.85 on June 25, their highest level in more than six years. Gold futures were also the highest since August 2013, reaching the price of $1,417.70. Gold prices have been recently trading on an uptrend amid recent expectations of a Fed rate cut and rising geopolitical concerns – factors that may affect the stock market.
However, gold prices fell slightly on Monday, with the markets potentially responding to the US announcement on Friday that stronger-than-expected non-farm payrolls have been recorded. This report eased investors’ expectations of a possible rate cut by the Federal Reserve.
Be the first to comment