Apple swoons in late going as U.S. stock-market rally runs out of steam

“Tuesday’s rally on Wall Street, which followed a brutal selloff during the previous session, was running out of steam, with the main indexes paring half of the opening gains,” Anora Mahmudova and Sara Sjolin report for MarketWatch.

“Equity buyers, who stepped in after China’s central bank cut interest rates on Tuesday, appeared less convinced by the afternoon session,” Mahmudova and Sjolin report. “‘While stocks are up 2%, that is less than where futures were trading, so today’s bounce feels frail and unconvincing,’ said Michael Antonelli, equity sales trader at R.W Baird & Co.”

“The CBOE Volatility index otherwise known as the Wall Street’s fear gauge, fell 24% to 30, but still remains at elevated levels last seen in October. The S&P 500 came off its highs and was up 28 points, or about 1.3%, to 1,917,” Mahmudova and Sjolin report. “The benchmark index fell into correction territory on Monday, after sliding to its lowest level since last October. The Dow Jones Industrial Average gained 245 points, or 1.5 %, to 16,115, with nearly all 30 components climbing, after three days in which all fell. The Nasdaq Composite advanced 94, or 2.1% to 4,621.”

After touching $111.16 earlier in the day and notching over $108 as of 3:05pm EDT, Apple (AAPL) shares ended the regular trading session up a mere 62-cents, or 0.60%, at $103.74.

Read more in the full article here.

MacDailyNews Take: Just when you thought we were easing into the station, this rollercoaster never ends!


  1. The stock market is based on utter fantasy, one which people buy into. It’s no different to bookies changing the odds on a bet to favour the outcome to their advantage.

    It’s just fancy way for trading companies to make money at other people’s risk, but a bet is a bet is a bet. Pay your money and take your chances.

    1. As long as people like you sit on the sidelines and don’t buy AAPL, the various fund managers out there will run the show. Don’t let them and buy when the stock is low, sell when the stock is high. You can take home the money instead of them.

      1. My broker recently told me he can’t get retail investors to buy when the market gets like this. They’re too scared of losing their money when people are deliberately yelling the sky is falling. I bought more Apple shares (and other dividend stocks shares) when I talked to him but I’m a long-term investor with plenty of shares and get dividends. I don’t see it as anything to worry about because I’m not using critical money to buy stock. When a stock of a good company drops I check out why and usually consider it a buying opportunity.

        I’ve heard China has trillions of dollars in reserve funds so this constant “China economy is doomed” doesn’t scare me. It’s probably only the Chinese stock market that’s fouled up and the average Chinese consumer will still have purchasing power. China is a huge country with lots of manpower and natural resources. We’re not talking Spain or Greece. China is not going bankrupt.

        I think the stock market is mostly a scam run by a few key people and that bothers me because it can really hurt the economy. Good companies need to be worth good money. No one should try to make good companies look less valuable or poorly run companies more valuable. That’s really bad business. Handicapping stocks based on future growth is just stupid. That’s like playing point spreads instead of actual wins. I’m not a gambler so I’m not interested in those weird betting schemes.

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