Apple Ban Rattles Tech Stocks, Dollar Soars To 6-Month Peaks: What's Driving Markets Thursday?

Another session marked by uncertainty was gripping the stock market on Wednesday, following reports that China is contemplating a ban on the use of iPhones by public personnel.

Shares of Apple Inc. AAPL fell 3% Thursday, after falling 3.6% Wednesday, on track for their second-worst week in 2023.

The action triggered a negative response in technology-related stocks, with the Nasdaq 100 underperforming compared to other major stock indices.

Meanwhile, the U.S. dollar surged to its highest level since the onset of the regional banks’ collapse in March, further weighing on risk sentiment. Initial jobless claims for last week came in below expectations, with 216,000 compared to the anticipated 234,000.

Cues From Thursday’s Trading:

The S&P 500 fell 0.3%, currently on track for its third straight session of losses, while high-quality blue-chip stocks in the Dow Jones managed to rise 0.3%.

Tech and small caps were the laggards, with the Nasdaq and the Russell 2000 down 0.8% and 1.1%, respectively.

US Index Performance On Thursday

Thursday’s Trading In Major US Equity ETFs

• The SPDR S&P 500 ETF Trust SPY was 0.3% lower to $444.91
• The SPDR Dow Jones Industrial Average ETF DIA rose 0.2% to $345.92
• The Invesco QQQ Trust QQQ fell 0.8% to $371.66, according to Benzinga Pro data.

Looking at S&P 500 sectors:

• The Utilities Select Sector SPDR Fund XLU outperformed, up 1.8%.
• The Technology Select Sector SPDR Fund XLK was the laggard, down 1.5%

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The following is the itinerary for Fed speeches scheduled for the day:

• Fed Governor Michelle Bowman, an FOMC member: 4:55 p.m. EDT
• Dallas Fed President Lorie Logan: 7:05 p.m. EDT

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Stocks In Focus:

• Qualcomm Inc. QCOM fell over 6%, while NVIDIA Corp. NVDA slipped nearly 3% as investors fear the potential of additional trade restrictions between the U.S. and China in the semiconductor sector.
• Centene Corp. CNC rose nearly 6%, after the company confirmed its profit guidance for 2023.
• C3.ai, Inc. AI plunged nearly 13% in reaction to quarterly reports.
• Companies reporting after the close include DocuSign, Inc. DOCU, RH RH, Semtech Corp. SMTC, Smartsheet, Inc. SMAR, Smith & Wesson Brands, Inc. SWBI and Zumiez, Inc. ZUMZ.

Commodities, Bonds, Other Global Equity Markets:

Crude oil fell 1.1%, with a barrel of WTI-grade crude trading at $86. The United States Oil Fund ETF USO was 1.1% lower to $77.7.  

Treasury yields were slightly lower, with the 10-year at 4.28% and the two-year yield down by 5 basis points to 4.98%. The iShares 20+ Year Treasury Bond ETF TLT was 0.2% higher for the day. 

The dollar rose, with the U.S. dollar index, which is tracked by the Invesco DB USD Index Bullish Fund ETF UUP, up 0.1%. The EUR/USD pair, which is tracked by the Invesco CurrecyShares Euro Currency Trust FXE, was 0.2% lower to 1.0707.

European equity indices had a negative session. The SPDR DJ Euro STOXX 50 ETF  FEZ fell 0.7%. 

Gold edged 0.1% up to $1,919/oz, while silver fell 1% to $22.93. Bitcoin BTC/USD was 0.4% higher to $25,835.

Staff writer Piero Cingari updated this report midday Thursday. 

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