Many thought the first trading day after Standard & Poor’s downgraded the U.S. creditworthiness to AA+ would elicit some reaction from Wall Street. However, Monday has been crazy on the big board, with Apple leading other shares for wild swings.
Traders placed per-share options as low as $335 to as high as $400 30 minutes afters the day’s open, as the Cupertino, Calif. tech giant became the most-active stock, leading the likes of CitBank, Bank of America and General Electric.
Concern over such wild fluctuations was expressed earlier when we reported that the iPhone represents 49.2 percent of Apple’s value. This caused one analyst to warn the handset could have an “outsized impact” on Apple stock.
Ed Sutherland is a veteran technology journalist who first heard of Apple when they grew on trees, Yahoo was run out of a Stanford dorm and Google was an unknown upstart. Since then, Sutherland has covered the whole technology landscape, concentrating on tracking the trends and figuring out the finances of large (and small) technology companies.
29 responses to “Apple Shares Suffer Crazy Mood Swings On The First Day Of Trading After US Credit Rating Downgraded”
And the ripples from the ‘Tea Party Downgrade’ continue…
This kind of swing has nothing to do with Apple and everything to do with the total market and the US rating. it really matters little in the short term. Even if Apple ends the day on the slow side it will recover a good portion if not all over the next few weeks.
Pity the same can’t be said about the US.
Its not like America doesn’t owe other countries billions upon trillions of dollars and were showing little progress in being able to pay them back…works a lot like our credit. This credit rating downgrade has been pending for a looonnggg time, its just been bolstered by the federal reserve.
Wait till it hits AA on the next downgrade and then maybe the government might wake up.
Now instead of trying to address the causes of the imminent Bankruptcy of America, they are just trying to put more spin on it while continuing to spend like Drunken Sailors.
Just today I read they were giving away another 100 Million to Africa. They already let half of Africa move to America. 90% of the 100 Million will end up in a half a dozen peoples bank accounts anyway.
America does have free Elections so I suppose you are only getting what you wanted in the first place. The real value of the American Dollar has dropped by 80% in the last ten years in case you haven’t noticed. It used to cost $350 for an ounce of Gold, now it is $1700. Gold hasn’t gone up, but your money sure has gone down and it’s quickly heading to Zero.
‘Tea Partiers Cheer the Downgrade of America’s Credit Rating’ The cultists of doom cheering on the Rapture. http://motherjones.com/mojo/20…
FIXED: And the ripples from years of deficit spending and entitlement programs continue…
3% loss is nothing compare to what other companies are getting. Did you see the financials? They are losing 10-15% shares in just one day. Apple stock is not recession proof, but they are safe bets for next 5-10 years.
Here is the real reason we have been downgraded. http://www.opednews.com/articl…
Why the hell doesn’t all of Apple’s cash reserve somewhat anchor the share price? Amazon seems to be less affected by the broader market than Apple despite having less reserve cash and much higher multiple. Plus, Apple is lagging much further behind its median target price. Why is that?
Why the hell doesn’t all of Apple’s cash reserve somewhat anchor the share price? Amazon seems to be less affected by the broader market than Apple despite having less reserve cash and much higher multiple. Plus, Apple is lagging much further behind its median target price. Why is that?
Glad I sold last week. :)
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Spending is only bad when a Democrat does it. The Tea Party was pretty quiet (nonexistent) when the last Republican President was spending like there was no tomorrow.
tinyurl.com/2df4ccp
Thanks Christian.