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Markets Snapped Back: What Happens Next

Just as fast as markets sold off rapidly yesterday, the major indices snapped back. Nasdaq (QQQ) added 1.8%, helped by Apple (AAPL) rising by an incredible 4.33% on the day.

Markets are willing to scoff at the March inflation report. Shelter is a big component of consumer spending, and insurance costs are rising. Investors should be wary of Apple adding over $60 billion in market capitalization in only a day. Other than lifting some iPhone repair restrictions, Apple has near-term challenges.

The market needs Apple to overcome the economic slowdown in China. The country’s real estate continues a fall that started over three years ago. Chinese consumers have most of their savings stuck in declining real estate prices. As a result, they put off buying new iPhones or buying expensive Tesla (TSLA) vehicles. Unless Apple finds a way to jump-start device sales, risks are rising that the Market rebound for the mega capitalization firms may stall.

In the failed merger and acquisitions front, Amazon’s (AMZN) CEO spoke out openly against the government blocking its iRobot (IRBT) acquisition. IRBT stock fell from nearly $60 in August 2022 to close at $9.09. With losses mounting, the robotic vacuum supplier risks eventual bankruptcy. The short float is 30.42%.

Your Takeaway

Watch the tech leaders first: Amazon and Apple. If shares trade flat or rise, the rest of the stock market may strengthen from here.

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