The highly-anticipated marketing event by Apple Inc. did not bode well for the information technology sector of the S&P 500 on Tuesday afternoon.
Tech Sector Takes a Hit
According to FactSet data, the tech sector experienced losses of approximately 1.7% in afternoon trading, with Apple shares slumping, at last check. Investors closely watched the company's event, particularly for details about the new iPhone 15.
A Make-or-Break Moment?
Despite the significance of the iPhone for both Apple and the world, Bespoke Investment Group suggests that the announcement of a new version is not necessarily a make-or-break moment for the stock. Historical data indicates that stock-price movements have varied significantly following previous iPhone releases.
Apple's Dominance
Nevertheless, Apple has consistently been a dominant force during the iPhone era. Bespoke Investment Group analyzed the stock-price movements after new releases dating back to 2007 and concluded that Apple has been "a monster" in the market. With a massive market value of approximately $2.8 trillion, Apple is among the influential "Big Tech" stocks that greatly influence the performance of the S&P 500 index.
Impressive Performance
Apple's shares have already surged more than 35% this year, surpassing the S&P 500's climb of over 16% year to date, as shown by FactSet data.
Tech Sector Shines in 2023
Interestingly, the S&P 500's tech sector has experienced even greater growth in 2023.
Tech Stocks Surge, Oracle Corp. Weighs on S&P 500
Shares of the Technology Select Sector SPDR Fund XLK have experienced significant growth this year, soaring over 37%, according to FactSet data. However, the exchange-traded fund is currently trading slightly below its 50-day moving average, with shares falling 1.7%.
On the other hand, the Invesco QQQ Trust Series I QQQ, which tracks the Nasdaq-100 index and holds Apple as its biggest holding, saw a slight decline of 0.9% on Tuesday afternoon. Despite this dip, the fund has still gained approximately 40% year-to-date.
Meanwhile, tech giant Oracle Corp. ORCL has had a rough day on the market, with shares dropping more than 14% in Tuesday afternoon trading. This decline came after the company's revenue outlook fell short of Wall Street's expectations.
The broader S&P 500 index SPX experienced a 0.6% decrease on Tuesday afternoon following the conclusion of Apple's marketing event. Investors are now anticipating an inflation reading on Wednesday. Apple's shares AAPL also took a hit, trading significantly lower with a 2.2% loss.
Overall, the U.S. stock market was down on Tuesday afternoon, with the tech-focused Nasdaq Composite COMP shedding 1%, while the Dow Jones Industrial Average DJIA dipped less than 0.1%, according to FactSet data.
