Apple Stock News: Markets Hit Hard By Trade War

This week, Apple had a hard hit coming from the interest rate cut and tariffs that will be implemented in September. Along with the entire stock market, there was a huge drop in “FAANG” stocks otherwise known as Apple, Facebook, Amazon Netflix and Google. 

Shares of Apple took the largest hit and fell about 5% due to the large presence Apple has in China with the production of the iPhone and other products. This led to a $53 billion-dollar market value drop. The trade war is reaching an increasing number of consumers and will touch everyone with the new tariffs that affect direct retailers. Tech companies utilize China for the manufacturing of their products, so the trade war has been detrimental to their health. 

In retaliation to the imposed tariffs, China has devalued its currency, the yuan to below 7 to a dollar. This specifically drowned the market causing the DOW to drop 767 points. 

Apple CEO Tim Cook

(Source: Business Insider)

On a lighter note, the Apple Card has begun to roll out. Currently partnered with Goldman Sachs, a preview has been presented to a random selection of people who signed up to receive the card. The card was created not with the intention to compete directly with premium cards, but rather to be accessible to every iPhone owner due to the fact that the signup process is simple and can be approved in real time. 

The credit card has three numbers associated to the card, for the phone, physical card and virtual number accessible to merchants that don’t take Apple Pay. With no late fees, annual fees or international fees, this is an enticing card and will attract customers of any age. There is also a privacy agreement with Goldman that restricts the information being spread. 

(Source: The Verge)

The rewards program is different than other credit cards as well. There is 3% cash back on any Apple transaction, which may bring in more revenue for Apple. Also, 2% cash back for Apple Pay transactions and 1% cash back for purchases made with the physical card. The main goal is simplicity, which I believe will be greatly appreciated among the younger generations. 

Along with the stock market, it was a very rough week for families across El Paso and Dayton where shootings happened 13 hours apart. CEO Tim Cook has made a statement declaring that he is “heartbroken” about the mass shootings. He continued to criticize the lawmakers’ lack of action around gun control. While many leaders do not stand up to call for action, it seems that Tim Cook has been clear about voicing his concerns about government policies. “In 2017 after criticizing an executive order, he joined a group of tech executives calling out Trump’s transgender military ban calling it “discrimination”.”

For more information on Apple can be found on I Know First Apple Stock News

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