Apple Contributes to 1.1% Nasdaq Drop as Fed Rate Concerns Rise
AAPL•Apple was among mega-cap technology stocks that drove a 1.1% drop in the Nasdaq 100, contributing to a 0.3% slide in the S&P 500 as investors grew wary of valuations and potential Fed rate hikes. Meanwhile, WTI crude futures tumbled 3.4% to $88.20 and gold and silver hit year-to-date lows.
1. U.S. Equity Performance
The S&P 500 fell 0.3% to 7,386.65, while the Nasdaq 100 dropped 1.1% to 29,084.50 as mega-cap technology stocks including Apple recoiled. The Dow Jones Industrial Average gained 0.2% to 50,872.11 and the Russell 2000 rose 0.1%.
2. Mega-Cap Tech Selloff
Apple and peers experienced profit-taking as investors assessed sky-high valuations and growing expectations for Federal Reserve rate hikes following robust jobs data. Concerns about monetary policy direction weighed heavily on long-duration tech names.
3. Commodity Movements
West Texas Intermediate crude futures plunged 3.4% to settle at $88.20 per barrel amid easing Middle East tensions. Gold and silver declined to their lowest levels this year as rising rate-hike bets put downward pressure on precious metals.
4. Macro Drivers
Positive comments on a potential U.S.-Iran deal undercut oil prices, while strong economic data reinforced Fed tightening expectations. Retail sentiment for major ETFs turned cautious, reflecting broader market risk-off dynamics.
