Apple's stock rating was lowered by analysts at Bank of America, which dragged down the shares of large technology companies.
Tech stocks have been pushed down all year due to investors rotating out of growth and into defensive assets to deal with higher interest rates and a possible recession
After the worst two weeks since the start of the Covid epidemic, the tech-laden index rose on Tuesday and Wednesday. The downward trend is back after a one-day decline of 2.8% on Thursday. The S&P 500 dropped.
Bank of America analysts led by Wamsi Mohan changed their rating to neutral from buy, straying from the buy position held by a majority of analysts.
A weaker buying cycle is one of the risks that the analysts pointed out. According to a report, Apple scrapped its plan to increase iPhone production by 6 million units.
The value of Apple's stock is now 20% less than it was at the end of the year.
Microsoft took the lightest blow of all the technology companies. The trading session ended with a 1.5% decline, which was still a low. The parent company of the internet giant dropped 2.5%. The shares of Meta Platforms, Facebook and Amazon were down.
Smaller growth-oriented tech companies were hurt by Wells Fargo's initiation of coverage with an overweight rating. Rivian was off 7.9%, whileshopify fell 8.45%.
The investment committee weighed in on the tech downturn.
All Rights Reserved © 2024
