This Week’s Market Moves: From Apple Spending Cuts to Softened Oil Prices

It’s been a rollercoaster ride for financial markets this year — and the last week has been no exception. From Apple announcing its slowing hiring to Google’s stocks becoming much cheaper to the havoc in commodities markets, it’s a miracle that investors know where to turn.

M & R Capital Management discusses the latest market moves below.

Apple Cuts Spending Sparking US Stocks Retreat

Monday afternoon saw US stocks relinquish their early gains following reports of the tech conglomerate, Apple’s, decision to cut spending and slow down hiring.

The Federal Reserve has struggled to wrangle inflation into submission for a few weeks. Thus, the worry of a recession has hung heavy over the markets. However, the report about Apple appears to have sparked deeper concerns.

After climbing 0.9% earlier, Apple’s stock dropped a whopping 2%, dampening the otherwise bright day for US stocks.

Despite that, US stocks experienced substantial gains in Asia and Europe. The FTSE index of Asia-Pacific shares rose around 2% after Beijing regulators urged banks to finance developers.

Main Street Investors Bask in Google’s Lower Stock Prices

Thanks to a vast stock split on Monday, June 18, a share of Google’s parent company, Alphabet, became much more affordable for avid Main Street investors.

The 20-to-1 margin share reduced the price of one share from around $2,200 to a mere $110 — a decrease of $2,090 per share!

While the stock split hasn’t altered Alphabet’s market domination (it’s still worth almost $1.5 trillion), it’s brought two major benefits.

Firstly, it has made Alphabet shares open to average investors. And secondly, it increases the likelihood that Alphabet will be added to Dow Jones Industrial Average.

On top of Alphabet’s stock split, other major companies have announced their intentions to follow suit; GameStop and Tesla are just two of them.

M&R Capital Management

Stocks and Oil Drowning as Markets Consider USA Rate Rises

Mixed stocks and decreased oil prices prevailed as the dollar climbed ever higher on Thursday, July 14. The jaw-dropping inflation figures released on July 13 had investors questioning what this means for US interest rates.

Last month, consumer prices across America increased faster than they have in 40 years, as per a report published by the Bureau of Labor Statistics. The annual inflation rate clocked higher than economists’ predictions at 9.1%.

These economic slowdown fears slammed oil prices, softening Brent crude oil prices by a major 5.1% to hit $94.50 per barrel. This reversed the international oil benchmark to levels seen before Russia’s Ukraine invasion.

Fears Over Recession Wreak Havoc on Commodities Markets

Friday, July 15, saw copper market routs deepen. The globe’s most vital industrial metal slid below the $7,000 per ton benchmark for the first time since late 2020. Why? Due to fears over the economic slowdown.

The impact of a trudging property market plus the seemingly never-ending Covid-19 lockdowns in China has seen a market initially worried about metal supply loss from Russia switch interest.

Copper prices have dropped incessantly, but the market’s view is changing to concerns that maddening rate increases and rising China coronavirus cases will smack demand for commodities, including copper.

Disclosure: M&R Investment Management, Inc. (“M&R”) is an investment adviser registered with the Securities and Exchange Commission (SEC). Registration with the SEC as an investment adviser should not be construed to imply that the SEC has approved or endorsed qualifications or the services M&R offers, or that or its personnel possess a particular level of skill, expertise or training.

M&R mainly provides investment advice to individual investors. All information provided herein is subject to change. Investment advice and financial planning services are provided by M&R. M&R is not affiliated with any of its custodians including:
Schwab Advisor Services or Pershing Advisor Services

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