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Pending Orders and Apple Lawsuit Apply Selling Pressure on the NASDAQ!


Apple stocks witness the second largest decline within the NASDAQ, falling more than 4.00%. Shareholders sold shares after news of another federal antitrust law violation.
Apple is set to receive its second fine from regulators for “monopolizing” the phone sector. The company has already received a $1.8 billion fine from the EU.
The NASDAQ rises 2.43% after the Fed’s dovish tone before triggering pending orders. The USA100 ended the day 0.24% higher.
UK Retail Sales remain unchanged beating expectations of a -0.4% decline. The Pound declines against most currencies regardless of higher retail sales data.

USA100 – Apple Stocks Struggle After A Second Antitrust Lawsuit!

The price of the USA100 is trading slightly lower during this morning’s Asian session continuing the downward momentum from 18:00 (GMT+2) onwards. The downward momentum was largely due to pending orders to sell at the new high. These orders are seen on the Depth of Market and Volume profile. However, in addition to this, the NASDAQ’s second most influential stock, Apple, declined more than 4%.

The NASDAQ has assigned a “weight” of 7.71% to Apple stock which is a concern for NASDAQ holders. This is because Apple has received another lawsuit against them for antitrust violations and “monopolizing” the industry through purposely making competitors’ products less suitable. Certain States within the US advised “Apple’s success is less based on the merits of their product but making other products less convenient for consumers”.

This would be the second penalty for Apple in 2024. The EU has already given Apple a $1.8 billion fine which has caused Apple stocks to fall up to 10%. If Apple stocks continue to decline, this may apply some pressure on the USA100 and will definitely result in the stock holding a lower weight. The USA100 was better supported by stocks with less weight rather than the more influential stocks. Of the top 20 influential stocks, 9 fell in value, while only 27% fell in value when monitoring the whole NASDAQ. Later in the day, the stock market in general can witness volatility as the Fed chairman is due to speak.

In terms of technical analysis, we can see the regression channel has thinned, which indicates there are no current active signals. The price instead will need to gain momentum and direction in order for signals to materialise. The breakout levels can be seen at $18,317.20 and $18,377.37. However, investors should note that these levels can also form “false breakouts”. The medium-term charts, such as the 2-hour chart, indicate buyers control the market. However, if a bearish price movement forms, support can be found between $18,191 and $18,246.

GBPUSD – Economic Data Continues to Improve Sentiment Towards The Dollar!

The cable exchange rate trades at its lowest level in over a month due to the strengthening Dollar and dovishness amongst members of the Bank of England. The exchange rate fell 0.99% on Thursday and a further 0.56% during this morning’s two sessions.

The BoE’s accompanying statement stated that inflation pressures are weakening, but wage growth rates remain above target levels, creating additional risks for the economy if the transition to a “dovish” course is too rapid. Though investors are concentrating more on the fact the Monetary Policy Committee saw no votes for a rate hike. For this reason, the committee seem more bearish than bullish. 8 members voted for a pause and 1 for a cut.

The US Dollar on the other hand is trading higher due to weakness in other currencies and the possibilities of less frequent cuts. Based on the comments from the Fed, the regulator will not delay the cuts but simply make them less frequent. In addition to this, the US Dollar is being supported by the latest US economic data. Unemployment claims remained low while the Philly Fed Index and Existing Home Sales significantly rose above expectations. In addition to this, investors were happy to see both the manufacturing and non-manufacturing PMI indexes remain above the significant 50.00 mark.

Michalis Efthymiou

Market Analyst

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