The Dow Jones fell over 300 points, ending 0.8% lower, with both the S&P 500 and Nasdaq continuing to weaken, down 0.6% and 0.5%, respectively.
Another day of falls came despite signs that inflation may actually be receding after the US CPI rose 0.3% in August and just 0.1%t when more volatile food and energy prices are excluded from the ‘core’ figure. This dragged the 12-month rate lower, from 5.3% to 5.0% and 4.3% to 4.0%, seemingly as predicted by the Federal Reserve.
Apple’s launches new iPhone
Apple (NASDAQ: AAPL) shares fell 1% as attention turned to the release of its latest iPhone and a new Apple Watch, the former still being the core of its sales.
The iPhone 13 features a longer battery life, an improved screen display and as always, a better camera. The tech giant also announced a new iPad and iPad Mini.
Oracle drops on weak report
Oracle (NYSE: ORCL) shares fell 2.8% as one of the key players in the ‘cloud’ war with the likes of Amazon (NASDAQ: AMZN) and Alphabet (NASDAQ: GOOGL) reported a 9% increase in profit on revenue growth of just 4%. Oracle’s cloud businesses, known as Infrastructure as a Service and Software as a Service, have now reached an annual recurring level of US$10 billion, or around a quarter of revenue.
Finally, shares in Chinese property developer Evergrande continue to tank after the country’s second-largest developer saw a run on its ‘wealth management products’ with many expecting a major default to occur. The group’s bonds now trade at a 70% discount with little hope of a government bailout.
US stock market movers
These US stocks were some of the biggest movers on Tuesday.
- Crocs (NASDAQ: CROX) up 8.5%
- Doximity (NYSE: DOCS) up 6.9%
- Atlassian (NASDAQ: TEAM) up 3.4%
- Teladoc (NASDAQ: TDOC) down 4.0%
- Comcast (NASDAQ: CMCSA) down 7.3%
- 10x Genomics (NASDAQ: TXG) down 7.9%
Back home on the ASX, the S&P/ASX 200 (ASX: XJO) is set to follow US markets lower at the open on Wednesday. For a recap of what’s happening on the local market, check out Rask Media’s ASX 200 morning report.