Traders are selling tech stocks today in reaction to Apple’s announcement that it would have to raise the prices of its devices to cover the cost of rising memory and storage chip prices.
Cold shoulder: “There seems to be a mini ice-age in Asia this morning,” Deutsche Bank’s Jim Reid told clients this morning. “SoftBank is around -14% lower after the NYT suggested that OpenAI may delay its IPO until 2027. This follows a sharp decline for the Magnificent 7 (-2.54%) yesterday. The tech mega cap index moved deeper into correction territory … in response to demand surges for memory and storage, [and] the news played into broader concerns that AI data centres were generating inflationary pressures.”
Just a thought: If chip shortages are forcing tech companies to raise prices, that will feed through into their Q2 and Q3 revenues. So it is not entirely clear that this selloff is warranted.
S&P 500 futures were down 0.54% this morning. The index closed flat yesterday.
In Europe, the Stoxx 600 was down 0.83% in early trading, and the U.K.’s FTSE 100 was down 0.75% before lunch.
