The Dow and the S&P500 did close higher but the Nasdaq composite close far behind with a 0.77% decline.
The entire fall in the Nasdaq composite yesterday can be attributed to Apple, as its accounted for nearly 13% out of the entire composite. Apple shed nearly $35 billion in market capitalization, its biggest one-day market-cap loss ever and it’s the biggest decline since 2008.
President Barack Obama reassured markets Wednesday, saying that if Republicans accept tax hikes on wealthier Americans, a deal could be pushed through in 'about a week.'
On the other side of the Atlantic, the European markets also closed higher Wednesday despite the release of weak euro zone retail sales data and a disappointing Spanish debt auction as solid U.S. numbers supported sentiment.
Today, the Asian stock markets trade mix with Japan Shares outperformed the broader market on the back of ongoing weakness in the yen, which traded close to an eight-month low against the U.S. dollar and the euro. Japan markets are now trading at their highest levels in 8 month.
Yet again, Investors continued to monitor developments surrounding the fiscal cliff in the U.S., approximately USD600 billion in automatic tax hikes and spending cuts due to come into effect on January 1, unless a divided Congress and the White House can work out a compromise in the four weeks left before the deadline.
There are fears that U.S. lawmakers will repeat the same political divisiveness that led Standard & Poor's to downgrade the U.S.’s AAA rating in August 2011 and tip the country back into a recession.
The markets are expected to trade cautiously ahead of tomorrow US job report that will come out before the bell at 13:30GMT.This data is closely monitor by Economist and Analyst as one as it gives a deeper understanding on the economical situation in the world largest economy.
Asset in Focus
Apple shares declined the most in almost four years yesterday on concern that the company will lose ground in Smartphone’s to Nokia in China while giving up market share to Google in tablets.
China Mobile, China’s largest wireless carrier, agreed to sell Nokia new Smartphones , the companies said yesterday. Though Apple has agreements with China Telecom and China Unicom to sell iPhones but the company hasn’t yet sign a deal with China Mobile in the world’s largest mobile-phone market.
The massive sell off also broke through major support area at 550 which fuelled the sell-off even further.
The immediate target for the stock is 520. The stock might move higher after reaching the support in front of the Christmas sales but the overall trend become bearish with a target price of 375.