Apple stocks drop on Sept. 25 setting off declines in the stock market

BY AARON SIMS
Posted on JUL 27, 2019

Declines in all three stock indexes worst since July 31: Analysts and investors are not alarmed.

Stock analysts and investors were not alarmed last week, after it was reported by Wall Street that Apple and other technology stocks declined in value on Sept. 25.

According to Sept. 27 news reports by the New York Times and BetaWired, declines in all three stock indexes on Sept. 25 were part of a chain reaction caused by Apple's announcement late in the afternoon on Sept. 24 that it had withdrawn a software update that prevented users from making phone calls. Others complained that they bent their new iPhones by sitting on them. Apple stock fell $3.88 to close at $97.87 in heavy trading.
On Sept. 25, the S&P 500 index lost 32.31 points, or 1.6 percent, to close at 1,965.99. The Dow Industrial Average slumped 264.26 points, or 1.5 percent, to close at 16,945.80. The Nasdaq composite index, which is dominated by technology companies, dropped 88.47 points, or 1.9 percent, to 4,466.75. It was the worst day for all three indexes since July 31.

Chief Investment Strategist at Janney Montgomery Scott told the New York Times that, "When you are at the peak, markets require more and more good news to keep on soaring high." Peter Cadillo, the Chief Market Economist at Rockwell Global Financial said, "The economic numbers were negative but not alarming and do not affect the direction of the economy at the moment."

Two economic reports released Sept. 25 were little help. Claims for unemployment benefits crept up last week. But the less volatile four-week average fell. A separate report said business orders for equipment plunged last month, mainly a result of falling orders for commercial aircraft.

According to BetaWired, trading this past week has turned increasingly turbulent, an abrupt break from a sleepy summer. On Monday, concerns about slowing growth in China and falling home sales knocked the market back, giving the S&P 500 its worst daily drop in more than a month.