Apple slides over 9% in market sell-off

by / ⠀News / August 6, 2024
Apple Slides

The stock market faced a significant downturn Monday morning, with Dow Jones futures plunging 1,300 points and other major indexes also experiencing sharp declines. Nvidia shares notably dived nearly 13% after the company informed key clients, including Microsoft, that its Blackwell B200 AI chips would be delayed due to a late-found design flaw in the production process. Other tech giants were not spared from the sell-off.

Tesla dropped more than 9% in premarket trading, Microsoft fell nearly 5%, Amazon tumbled more than 8%, and Apple slid more than 9% following news that Warren Buffett’s Berkshire Hathaway had reduced its stake in the iPhone maker by 49.4%. The broader market also faced significant pressure. The Invesco QQQ Trust and SPDR S&P 500 ETF both experienced pre-market declines of 5.5% and 4%, respectively.

The Bitcoin price plummeted more than 17% to approximately $50,000, and cryptocurrency stock Coinbase Global fell over 16% in pre-market trading. This week’s economic calendar is light, with few pieces of data for investors to analyze.

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Market turmoil grips tech giants

According to FactSet, the Institute for Supply Management’s service-sector activity index, due out Monday at 10 a.m. ET, is expected to return to expansion territory at 51. Several key earnings reports are anticipated this week, including those from Palantir Technologies, Uber Technologies, Caterpillar, and Novo Nordisk. On Friday, the Dow Jones Industrial Average sold off by 1.5%, the S&P 500 lost 1.8%, and the Nasdaq composite plunged 2.4%.

The small-cap Russell 2000 index tumbled by 3.5%. Experts discussed current trading conditions and strategies for investors to navigate the ongoing market volatility. Several stocks are in or near buy zones in today’s market, but many faced significant declines in premarket trading.

The ongoing market turmoil underscored various economic and financial pressures, from high leverage in currency trades to disappointing corporate earnings, contributing to the significant sell-off across global markets. Investors are advised to remain cautious and adjust their strategies to the unfolding market conditions.

About The Author

Kimberly Zhang

Editor in Chief of Under30CEO. I have a passion for helping educate the next generation of leaders. MBA from Graduate School of Business. Former tech startup founder. Regular speaker at entrepreneurship conferences and events.

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