Fed interest-rate cuts lead to broad tech retreat; Apple shares fall 3.3% after hitting new high

“Technology stocks shifted largely to the red Tuesday afternoon after the Federal Reserve’s latest round of interest rate cuts disappointed investors who were hoping for a more drastic move,” Benjamin Pimentel and Rex Crum report for MarketWatch.

“The Fed lowered the discount rate by a quarter point to 4.75%, but a rate cut of a half point had been widely expected. The Fed also cut the nation’s funds rate by a quarter point to 4.25%, which was in line with expectations,” Pimentel and Crum report.

“Reaction was swift, as the tech-heavy Nasdaq Composite Index fell ($COMPQ: 2,652.35, -66.60, -2.4%),” Pimentel and Crum report.

“Among bellwether tech stocks, Apple Inc. fell (AAPL: 187.71, -6.50, -3.3%) fell. Earlier in the session, Apple shares reached a new high of $196.83,” Pimentel and Crum report.

Full article here.


  1. What an overreaction! I simply can’t believe the run-up was in expectation to a larger rate cut!

    There isn’t much that can hold AAPL from quickly recovering and continuing its growth. Significant elements are converging for Apple and I’m sure they’ll beat their own projections again.

    I’m holding onto my AAPL shares.

  2. If you are looking for something to mark down, try this:

    If next year’s stuff, beginning with Steve’s annual January performance, doesn’t meet expectations of new wow just wow, boom it just works, etc., etc., then neither will these AAPL expectations materialize.

    In spite of the lie that it is, MSoft has done a great job of making Leopard look like an attempt to match up with Vista which means the switching, without some extraordinary boost in speed and power from Cupertino, will not accelerate and market share gains will not be enough to attract new investors.

    So, that leaves tunes players and phones. We’ll see what the new generations of these gadgets do and maybe it will be enough. But, that’s a lot of maybe.

  3. aapl should reach over $400 next year. We should just ignore the parallels between this market run-up and the run-up in 99/00. After all, the Merican economy is based on consumer purchasing, and credit problems never affect that! This is especially true when pricing power is lost and companies have to drop prices over and over to reach lower and lower down the economic ladder to continue market momentum!

  4. For a realist you sure seem to have your head in the clouds. Fact is, OS X “Leopard” is far and away a superior computing solution than Vista. This alone will fuel a serious migration that has probably only just begun. Thats being real. Facts on the ground. Saying MS has a “perception” out there is having your head in the clouds.

Reader Feedback

This site uses Akismet to reduce spam. Learn how your comment data is processed.