Apple, and the Nasdaq, Dow, and S&P 500 swooned Wednesday amid rampant U.S. inflation and overall economic concerns.
The Nasdaq and the S&P 500 dropped 3% on Wednesday as a rally in growth shares faded amid economic growth concerns, while Target plunged to the bottom of the S&P 500 after the retailer became the latest victim of surging prices.
Target Corp’s first-quarter profit halved and the company warned of a bigger margin hit on rising fuel and freight costs. Its shares fell 25.2% and were tracking their worst day since the Black Monday crash on Oct. 19, 1987.
All of the 11 major S&P sectors declined, with consumer discretionary and technology stocks down 5.7% and 3.5%, respectively.
Wells Fargo Investment Institute on Wednesday adjusted its economic expectations to make a mild U.S. recession its base case for the end of 2022 and early 2023 based on economic data…
The S&P 500 is down 16.8% so far in 2022 and the Nasdaq has fallen more than 26%, hit by growth stocks… Big Tech and growth companies such as Microsoft Corp, Apple Inc, Google owner-Alphabet Inc, Meta Platforms, Tesla Inc and Amazon.com fell between 3.5% and 6.0% after leading a sharp rebound in the previous session… The Dow Jones Industrial Average was down 836.46 points, or 2.56%, at 31,818.13, the S&P 500 was down 125.35 points, or 3.07%, at 3,963.50, and the Nasdaq Composite was down 432.54 points, or 3.61%, at 11,551.99.
MacDailyNews Take: With any luck, we might get another crack at AAPL under $140! 🙂
‘Tis best to get a handle on inflation, if you know how, while you still can. – MacDailyNews, May 11, 2021
Earlier this year, Interactive Brokers founder Thomas Peterffy said, “Inflation is 7% — 1% or 2% [in interest rate hikes] doesn’t mean anything. If they really wanted to stop inflation, they would have to raise rates to 4%, 5%, 6%.”
Inflation is repudiation. — Calvin Coolidge
When a business or an individual spends more than it makes, it goes bankrupt. When government does it, it sends you the bill. And when government does it for 40 years, the bill comes in two ways: higher taxes and inflation. Make no mistake about it, inflation is a tax and not by accident. — Ronald Reagan
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