Shares of Apple Inc. were swamped by a flood of red on Wall Street Monday, falling 2 percent. All three indices saw triple digit losses as hopes of a Fed rate cut by month’s end begin to fade.
The Dow Jones Industrial Average finished 115.98 points, or 0.4% lower, at 26,806.14. The S&P 500 lost 0.5% to 2,975.95 while the NASDAQ Composite declined 0.8% to 8,098.38. Wall Street’s outlook for the rest of the week now hinges on the testimony of U.S. Federal Reserve Chair Jerome Powell.
Powell will reveal the latest outlook for monetary policy before congressional panels on Wednesday and Thursday. Analysts said Powell’s testimony will reveal the timeline for the Fed’s “mini-easing cycle.”
“Friday’s employment data took the market by surprise. That dampens the prospects of the Fed acting,” said Peter Cardillo, chief market economist at Spartan Capital Securities. “They will have to collect further evidence” before deciding on their next move.
Dan Ives, an analyst at Wedbush Securities, said he remains positive about global iPhone demand. He feels there seems to be a “slight uptick” in production from Apple suppliers thanks to recent price cuts in China.
Despite the mixed reviews, Apple still commands respect on Wall Street. Apple’s stock is up more than 25 percent this year, making it one of the best performers in the Dow thus far into the year. Apple is also sitting on an enormous cash pile worth $285 billion at the end of January.