Apple (AAPL) Shares Plummet Over 9% Following Trump's Tariff Announcement
Many stock indices declined after the US President announced the introduction of tariffs for multiple countries, as we reported yesterday morning. During yesterdays trading session, the sell-off in equities intensified.
According to media reports, market participants had hoped that the tariff threats were mere rhetoric and a negotiation tactic. However, many were shocked by both the number of countries affected and the scale of the imposed tariffs. Several well-known technology companies led the market downturn.
How Do Trump's Tariffs Impact Big Tech Companies?
Significant tariffs were imposed on Chinese imports, yet Apple manufactures around 90% of its iPhones in China. Many affordable products sold on Amazon are also set to become more expensive, as they are sourced from China.
Meta Platforms' advertising business could suffer considerable losses as companies worldwide cut advertising budgets. Nvidia and Broadcom may also struggle, given that the tariffs apply to many electronic devices incorporating their chips.
As a result, shares of Apple (AAPL), Amazon (AMZN), Meta Platforms (META), Broadcom (AVGO), and Nvidia (NVDA) fell by approximately 9% by the close of trading yesterday.
Microsoft (MSFT) shares, however, proved more resilient, dropping just 2.3%, as software products are not easily subject to tariffs. Moreover, software developers do not rely on international supply chains.
Technical Analysis of AAPL Chart
Apples stock price fluctuations have formed a trend channel (shown in blue), with:
The upper boundary acting as resistance since last autumn, although bulls managed to push the price above it during the Christmas rally. We previously highlighted Apples overbought condition and the possibility of a correction on 27 December 2024.
New data indicates that resistance has now shifted to the median at around $225.
This puts the lower boundary of the trend channel at risk of a bearish breakout. In the coming days, AAPLs chart may see a bearish assault on the psychological $200 level, which proved significant in August 2024.
Read more: https://fxopen.com/blog/en/oa-apple-aapl-shares-plummet-over-9-following-trumps-tariff-announcement/
Text source: Forex Trading Blog
