Apple shares spent much of Tuesday down 4% in value. The AAPL selloff was part part of a general drop in tech stocks amidst fears of a rise in interest rates.
At one point during the day, the value of each AAPL stock had dropped about $5.30. That’s a decrease of roughly $88 billion in Apple’s $2.1 trillion market capitalization.
Update: Apple shares finished the day down 3.54%.
Knowing what causes markets to rise and fall is an arcane proposition, but The New York Times credited Tuesday’s fall of tech stocks to a comment by U.S. Treasury Secretary Janet Yellen that interest rates will have to increase to head off inflation later in 2021.
That apparently caused Google shares to decline 1.7%, Facebook to go down 1.3%, Amazon to decrease 2.2% and Netflix to drop 1.2%.
Time to buy AAPL stock?
The iPhone-maker’s stock price has been on the rise recently, so this is not a dramatic lowering in shareholder value. The last time Apple shares were at this level was April 6, 2021 — just a month ago. That said, it didn’t get a boost last week after the company announced surprisingly good financial results for the first quarter of 2021. The stock price is down over 5% since then.
Still, anyone considering picking up some APPL might consider the shares on sale. The company has been a solid long-term buy for many years. Its stock price has gone up 930% since May 2, 2011.
Especially as Yellen has no power to affect interest rates. That’s up to Federal Reserve Chair Jerome Powell and the rest of the Fed. So the tech market drop on Tuesday was a reaction to a comment from Yellen with no teeth to back it up.
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