Tech stocks play a significant role in the health of the economy. The strength of high-performing technology companies can impact the Dow Jones in a positive way. Of course, the opposite may also occur. To the shock of many, the opposite did happen. A “tech stock rout” pulled down the stock market by 600 points. Investors in tech stocks aren’t the only ones losing money. A large number of investors across the board suffered losses.
Apple, a long-time giant in the tech industry, played a role in the 602-point market drop. Lack of demand for Apple products drove the decline. Apple’s stock dropped in the 5% range. Such an enormous loss of valuation sent shockwaves through the global markets. Neither Apple nor the tech sector was alone regarding their negative impact. Goldman Sachs lost 7% of its value due to a legal judgment in Malaysia. Overall, however, the tech sector played the most significant part in the market’s woes.
Tobacco, oil, and consumer electronics stocks suffered losses. Overall, November isn’t shaping up to be an excellent month for the economy. November’s blues come on the heels of the ups and downs the Dow experienced in October. Perhaps now investors are starting to panic.
Experienced investors realize that the stock market reflects an environment requiring a long-term strategy. Stocks and other investment assets experiences highs and lows. Investors who avoid trying to make positive returns for the short-term may achieve better results than those gambling on current conditions. Multi-year investors in conservative assets combined with diversified investments might overcome expected market downs.
Still, there are reasons for investors to worry. Economic instability due to trade ways hasn’t eased minds. Apple and the other tech companies won’t likely be down for long. Established corporations long ago proved their ability to thrive in any market climate. Startups might be on shakier ground.
Apple’s woes, in particular, come from soft demand for its products. Considering Apple’s development pipeline and plans to enter the entertainment industry, demand will probably pick up in the future.